Enterprise Television – Kenya Small Business Payments Boost from CBA
Kenya’s biggest privately owned bank, CBA, has teamed up with a local financial technology company to speed up payments for goods or services delivered by suppliers, its chief executive said on Wednesday.
The new service will be hosted on an online platform run by fintech Ennovative Capital, a Kenyan firm which licenses the software from U.S. developer Prime Revenue.
Late payments for goods and services are common problem for small Kenyan businesses. Retailers take an average of five to seven months to pay suppliers, the ministry of trade found in a 2017 study.
CBA Kenya’s chief executive Jeremy Ngunze, said “We are offering supply-chain financing through our online web-based platform, at the launch of the service.
“Firms that contract small suppliers will get instant access to cash equivalent to the orders, allowing them to pay their suppliers faster”.
“The service will be offered through an open platform, giving participating buyers and suppliers access to liquidity”. He said.
Report reveals CBA has reaped huge rewards from pioneering mobile phone-based lending in Kenya after teaming up with telecoms operator Safaricom in 2012 to launch the dominant service, M-Shwari.
The new service for firms is also seeking to harness technology since it is web-based.
“It cuts a lot of administrative challenges and paper work,” said Kefa Nyakundi, the managing director of Ennovative.
The facility is backed by African Guarantee Fund, an initiative of the African Development Bank aimed at spurring financing for small and medium enterprises on the continent.
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