Banque Sidian grants Covid-19 “washing” loans to MSMEs in the water sector –
Sidian Bank and Aqua for All, through Covid-19 WASH Loans, have provided support to address service and financing gaps in the water, health and sanitation sector.
The solution, a Covid-19 Response (WASH) loan facility, targets MSMEs in the water and sanitation value chain sector. The objective of the facility is to develop innovative solutions for water service providers through short-term working capital, asset and project financing facilities.
According to one of the loan recipients, Arahuka Distributors Limited, a Kangemi-based retailer, the loan allowed him to buy water tanks in large quantities and sell them at a discount to his customers to ensure that the community has sufficient water tanks.
Read: Sidian Bank records pre-tax profit of Ksh 72 million in 2020
With a population of 50 million, 32 percent of Kenyans depend on unimproved water sources, such as ponds, shallow wells and rivers, while 48 percent of Kenyans do not have access to basic sanitation solutions. These challenges are particularly evident in rural areas and urban dwellings where people are often unable to connect to water infrastructure.
âThrough the Covid-19 Wash Loan Facility, the Bank is keen to create social and economic impact on households and communities in Kenya by providing access to affordable credit to ensure that end beneficiaries have easy access to clean, safe water and affordable sanitation. solutions. At Sidian Bank, we are passionate about supporting community organizations and small water service providers to extend their reach to many beneficiaries to improve access to water and sanitation services for households and communities during the COVID-19 crisis, âsaid Loise Mwangi, Head of Banking Agency at Banque Sidian.
According to research, in rural Kenya, the average total adaptation costs for unreliable or remote water supply are around $ 38 (Ksh 4000) per month. In comparison, the average water bill for a typical Nairobi household that is connected to a piped system is only $ 4.46 (Ksh 500) per month. This comparison highlights the economic burdens which often weigh more heavily on rural customers not connected than on households connected by pipeline. However, there are many areas where piped water connections do not produce a reliable and constant water flow. Thus, solutions such as boreholes and rainwater collection tanks are also needed in urban and peri-urban areas.
Thanks to the loan facility, Arahuka Distributors business growth increased by 30 percent and the success rate led him to recommend other business owners to take out the loan for water, health and sanitation.