Amica Sacco earmarks more loan incentives for startups, SMEs

By Steve UMIDHA

Amica Saving & Credit LTD made an immense stride last year in securing a loan facility of Kes300 million from the Kenya Development Corporation (KDC) under the SAFER project for lending to micro, small and medium enterprises.

But there’s still a huge financing gap, with many smallholder firms struggling to access affordable credit, according to the Sacco’s Chief executive officer Dr. James Mbui, who is now keen to tap more strategic alliances akin to the KDC model to bridge this financing hole.

The Sacco which targets to grow its membership to about 15,000 this year, is pegging its 2025 growth numbers to strategic partnerships with lenders extending flexible rates, earmarking entities like Commodities Fund and Agricultural Finance Corporation for its capital growth.

According to Mbui, a chunk of the Kes300million it received last year from KDC has since been loaned out to its customers, a host of which are in agribusiness as well as business individuals.

The firm will spread its offerings to serve high-net-worth customers, including micro-savings groups or chamas, and institutions as well as safe investment opportunities “beyond traditional interest income to enhance our investment income.”

Amica targets a revenue growth for the full year 2025 of Kes 1.6Billion with a net income of Kes 440million, as it looks to build on its impressive 2024 results when it posted Kes 1.3 billion in revenue, despite a wobbly business environment blemished by the Gen-Z protests.

Small and Medium Enterprises (SMEs) are integral to the Kenyan economy, driving innovation, employment, and economic growth. The Sacco has consistently over the years introduced comprehensive measures aimed at enhancing SME growth and sustainability, underscoring its commitment to supporting this vital sector.

The move will significantly boost the firm’s funding opportunities and financial support programs available for SMEs, highlighting how these initiatives can catalyze business development and success not only in the Murang’a region but across the country, according to Dr. Mbui.

Startup or SME loans are essentially a form of financing, either from a private firm or a government – backed loan facilities, aimed at helping businesses grow and innovate. Occasionally, funding comes with some form of mentorship and support.

Other areas of growth will see an introduction of a new money market fund (MMF) product with relaxed risk management norms as the Murang’a – based Sacco seeks to give its customers a simple, faster and smarter way to invest and grow wealth.

“We are introducing a Money Market Fund account to meet the increasing demand from economically active Kenyans and to compete effectively with other investment companies in the market,” said Dr. Mbui during the firm’s 27th Annual Delegates Meeting (ADM) held in Maragua, Murang’a County.