Premier Credit, a leading Kenyan microfinance institution focused on lending to micro, small, and medium enterprises (MSMEs), has received a significant financial boost from two international investors. Abler Nordic and Norfund have each provided a senior loan of KSh 1.18 billion ($8 million USD) in local currency, resulting in a combined investment of KSh 2.37 billion ($16 million USD). The investment is expected to improve access to affordable financing for unbanked entrepreneurs, furthering both organizations’ goals of empowering low-income households and creating jobs in Kenya.
Empowering Kenya’s MSMEs Amid Economic Challenges
Kenya’s MSMEs are essential to the country’s economic growth, contributing close to 40% of its GDP. With over 7.4 million MSMEs employing approximately 15 million people—accounting for over three-quarters of the national workforce—these businesses are vital in driving job creation and reducing poverty. However, many MSMEs face significant barriers when seeking access to working capital, largely due to strict bank lending criteria, lack of collateral, and insufficient credit history.
Godfrey Kaindoh, Investment Director and Africa Lead at Abler Nordic, emphasized the importance of this investment, especially given the current economic climate:
“Supporting MSMEs with accessible, flexible working capital is even more critical than ever to safeguard livelihoods and drive job growth, amid the rising cost of living and post-COVID economic challenges. Premier Credit’s commitment to helping businesses in Kenya succeed is commendable, and we look forward to creating even greater value together with their strong management team.”
Premier Credit’s Commitment to Kenya’s Entrepreneurs
Since its inception in 2013, Premier Credit has played a pivotal role in providing affordable financing to over 600,000 MSME entrepreneurs, particularly in remote areas and informal settlements. Notably, close to 45% of the company’s customers are women, and more than 60% live in rural areas, highlighting the company’s commitment to inclusivity and addressing the financing gap for underserved populations. Premier Credit’s relationship-based approach, fast loan approvals, and flexible repayment terms have contributed to its strong customer retention rate of 90%.
Gideon Nyaga, Managing Director of Premier Credit, expressed gratitude for the partnership:
“Premier Credit Kenya is honored to partner with Abler Nordic and Norfund, and this investment will strengthen our capacity to serve the diverse needs of micro and small businesses in Kenya. The funds will be allocated responsibly, ensuring that they have a meaningful impact on the businesses and communities we serve.”
Premier Credit’s success has been driven by its ability to maintain profitability and a strong loan portfolio, which has enabled the company to expand its services to underserved areas of Kenya. The new funding will support further geographic expansion and help Premier Credit diversify its MSME portfolio into sectors beyond its current focus on trade and transport, including education and agricultural value chains.
Abler Nordic and Norfund’s Long-Term Vision for Kenyan Entrepreneurs
Norfund and Abler Nordic, both committed to financial inclusion and job creation, view Kenya as a key market for their investments. Judy Kinyanjui, Investment Director for Financial Inclusion at Norfund, reinforced this by stating:
“Kenya is a key country for our investments, and partnering with Abler Nordic to support Premier Credit underscores our commitment to empowering entrepreneurs and boosting job creation in Kenya.”
Beyond the direct financing, Norfund and Abler Nordic are exploring additional ways to support Kenyan MSMEs, including technical assistance projects through business support and grants. These projects are designed to provide entrepreneurs with not only financial capital but also the skills and resources needed to grow and sustain their businesses in the long term.
Diversifying Premier Credit’s Product Offerings
In addition to MSME loans, Premier Credit offers a range of financial products designed to improve the livelihoods of individuals and communities across Kenya. These include salary loans for households, pension loans, school development loans for low-cost private schools, and asset financing for water tanks and biodigesters, which convert organic waste into biogas for cooking and lighting. The company’s focus on environmental sustainability, through the promotion of biodigesters and bio-slurry for use as fertilizer, also reflects its commitment to creating positive social and environmental impacts.
With the injection of KSh 2.37 billion from Abler Nordic and Norfund, Premier Credit is well-positioned to continue expanding its reach and deepening its impact across Kenya’s MSME landscape. The partnership marks a critical step in ensuring that unbanked entrepreneurs, particularly in rural and underserved areas, have the financial support they need to thrive and drive Kenya’s economic growth.
About Premier Credit
Premier Credit is a microfinance institution focused on providing affordable financial solutions to MSMEs in Kenya. Since its founding in 2013, the company has supported over 600,000 entrepreneurs, with a particular focus on rural and underserved communities. Premier Credit offers a range of financial products, including MSME loans, salary loans, pension loans, school development loans, and asset financing for water tanks and biodigesters.
Abler Nordic is an investment firm focused on driving financial inclusion and supporting job creation across emerging markets. The firm is dedicated to providing capital to businesses that empower low-income households and promote sustainable development.
Norfund is the Norwegian Investment Fund for developing countries, focusing on creating jobs and improving lives by investing in businesses that drive development in underserved regions. Norfund is committed to financial inclusion and empowering entrepreneurs across Africa.
