Swedfund has announced a second investment of Ksh 971 million (US$7.5 million) in Victoria Commercial Bank (VCB) to further enhance the bank’s ability to finance small and medium-sized enterprises (SMEs), which play a crucial role in Kenya’s economy by creating jobs and fostering growth.
“Small and medium-sized enterprises are the backbone of economies, employment, and innovation. With this second loan, we aim to deepen our impact and bolster their capacity to support even more businesses. This investment aligns with Swedfund’s mission to reduce poverty through sustainable investments,” said Jane Niedra, Investment Director for Financial Inclusion at Swedfund.
Access to long-term finance remains one of the greatest challenges for SMEs in developing countries. Swedfund’s investment intends to provide SMEs in sectors such as manufacturing, trade, and agriculture with improved access to capital, enabling them to grow and expand their operations.
“We are proud to partner with Swedfund, a respected institution backed by the Swedish government. Through this collaboration, we can continue to grow while upholding financial integrity. Beyond financing, Swedfund offers valuable technical expertise, which helps us better support our SME clients and contribute to sustainable economic development. We deeply appreciate this partnership and our shared focus on growth and long-term sustainability,” said Dr Yogesh Pattni, CEO of VCB.
In 2018, Swedfund made its first investment in VCB with a loan of Ksh 67 million (US$5 million), becoming the first development finance institution to invest in the bank.
With Swedfund’s backing, VCB has developed an environmental and social management system (ESMS) to systematically address sustainability risks, which includes a sustainability policy, ESG risk assessment, and staff training. The management system adheres to the IFC Performance Standards and the ILO Core Conventions.
As part of its commitment to gender inclusion, VCB has launched Women4Growth, a Swedfund-supported women’s empowerment programme providing leadership and inclusion training. The bank qualifies for the 2X Challenge, with over 50% female employees and more than 30% female seniormanagers.
