Absa Bank Kenya and Unilever Kenya have launched a Sh4 billion SME financing programme aimed at improving access to working capital for distributors, retailers, and stockists across Kenya. The initiative is expected to strengthen the country's consumer goods supply chain while supporting the growth of small and medium-sized enterprises (SMEs), which play a vital role in the Kenyan economy.
The financing programme will be delivered through Absa Bank's Wezesha Stock Loan solution, offering businesses fast and flexible access to credit. By addressing one of the biggest challenges facing SMEs—limited working capital—the partnership seeks to help businesses expand operations, improve stock availability, and meet growing customer demand.
Supporting Kenya's SME Sector
SMEs account for a significant share of employment and economic activity in Kenya. However, many distributors and retailers struggle to access affordable financing, making it difficult to maintain adequate stock levels and grow their businesses.
The new financing programme directly targets these challenges by providing funding that enables businesses to purchase inventory without lengthy approval processes or heavy collateral requirements. According to the partners, the initiative is expected to improve liquidity across Unilever's distribution network and create new opportunities for business expansion.
Programme to Benefit More Than 38 Distributors
The Sh4 billion SME financing programme will initially support more than 38 Unilever distributors operating across Kenya, along with thousands of retailers and stockists within their distribution networks.
During the first phase, Absa Bank Kenya and Unilever Kenya aim to onboard more than 10 distributors before the end of the year. Over time, the programme is expected to reach many more businesses as participation expands.
Unilever's distributors currently supply products to over 140,000 retailers nationwide, making the financing initiative an important boost for Kenya's fast-moving consumer goods (FMCG) sector.
Fast Digital Access to Financing
The financing facility will be available through Absa's Wezesha Stock digital lending platform.
Eligible businesses can access:
- Unsecured loans of up to Sh10 million.
- Up to Sh5 million disbursed within 48 hours through a fully digital application process.
- Additional financing options, including invoice discounting, local purchase order (LPO) financing, and asset finance.
The digital platform is designed to simplify borrowing by reducing paperwork and speeding up loan approvals, allowing businesses to respond quickly to market demand.
Strengthening the Consumer Goods Supply Chain
A major objective of the partnership is to improve efficiency throughout Kenya's consumer goods value chain.
Distributors often face cash flow challenges because they must purchase products before receiving payment from retailers. This financing programme helps bridge that funding gap, ensuring businesses can continue stocking popular household products without interruption.
Improved access to working capital is also expected to reduce stock shortages, enhance product availability, and improve customer service across retail outlets nationwide.
Leaders Highlight Long-Term Partnership
Speaking during the launch, Yusuf Omari, Interim Managing Director and CEO of Absa Bank Kenya, said the initiative builds on the long-standing relationship between the bank and Unilever.
He noted that the programme is designed to remove long-standing barriers to financing by providing distributors and retailers with reliable access to capital needed to grow their businesses and strengthen the wider distribution ecosystem.
Luck Ochieng, Managing Director of Unilever Kenya, emphasized that distributors are central to the company's operations and that improving their access to financing will support sustainable growth across the supply chain.
Boosting Kenya's Economic Growth
The partnership is expected to generate broader economic benefits beyond the participating businesses.
By supporting SMEs with affordable financing, the programme is likely to:
- Improve inventory availability.
- Increase business resilience.
- Support job creation.
- Enhance supply chain efficiency.
- Promote inclusive economic growth.
As SMEs expand their operations, they contribute to higher productivity and stronger economic performance across multiple sectors.
The Sh4 billion SME financing programme between Absa Bank Kenya and Unilever Kenya represents a significant investment in Kenya's entrepreneurial ecosystem. By combining digital lending with supply chain financing, the initiative addresses one of the biggest obstacles facing distributors and retailers—access to working capital.
As more businesses join the programme, the partnership is expected to strengthen the consumer goods value chain, improve product availability across the country, and empower thousands of SMEs to grow sustainably. It also reinforces the shared commitment of Absa Bank and Unilever to supporting Kenya's long-term economic development through innovative financial solutions.
