Commercial Bank Of Africa (CBA) has joined other banks in courting the lucrative Small and Medium Enterprises (SME) market. They have launched 3 products that target an SME segment that is valued at Ksh. 807 trillion.
The bank is targeting the suppliers and distributors of its corporate customers, traders, manufacturers and entrepreneurs in the growing real estate sector. They are doing this with a range of differentiated services that suit the dynamic SME customer needs.
In support of the SME product, the bank has introduced a real-data credit appraisal methodology that reduces the loan processing period to two days. It also ensures that SME’s that have been diligent in servicing their previous loans are able to enjoy better credit terms whenever they apply for a loan. They have also opened up a SME only branch on Kirinyaga Road in a bid to better serve this market segment. Each of the SMEs will be assigned a Relationship Manager responsible for providing counsel to customers and streamlining processes to ensure ease of banking.
Statistics indicate that in Kenya, 3 out of every four people in gainful employment work in the SME sector. This sector contributes nearly 20% of Kenya’s GDP. Government statistics indicate that this sector is growing faster than others in the economy and currently accounts for over 92% of all new jobs created annually. This explains the interest from the banking industry.
The three products are:
1. Seed Business Account
• Account opening balance – Ksh. 1,000.
• No minimum operating balance.
• No maintenance fee for balances above KES 10,000. (KES 300 for avarage monthly account balances below KES 10,000).
• Access to a Business Debit Card.
• Borrow up to 150% of your savings.
• Free daily, monthly or quarterly E-statements.
2. Kiota Business Account
• Minimum account opening balance of KES 2,000.
• No minimum operating balance.
• Monthly ledger fees of KES 1,000 covering Unlimited chequebooks & Unlimited internal transfers.
• First 40 transactions in the month are free.
• Access to a Business Debit Card.
• Borrow up to 200% of your savings.
• Pay your KRA iTax dues through CBA’s Internet
banking platform.
• Free daily, monthly or quarterly E-statements.
Star Business Account
3. Star Business Account
• Account opening balance – KES 2,000.
• No minimum operating balance.
• Monthly ledger fees based on the number of transactions (KES 40 per transaction with a
minimum of KES 600 per month).
• Free Lipa Na Mpesa managed by CBA (You can also transfer your Lipa Na Mpesa Till to your CBA account at no additional fees).