Standard Chartered Kenya, a branch of the London-based international bank Standard Chartered, loaned KES 300 million (USD 3.75 million) to Small and Micro Enterprise Programme (SMEP), a microfinance institution (MFI) in Kenya, with the goal being to benefit over 20,000 microfinance borrowers.
SMEP evolved from a relief program into an MFI in 1999. With approval from the Central Bank of Kenya, and pending receipt of a banking license, SMEP will become a deposit-taking microfinance bank by the end of the year. In preparation for high demand for its deposit services, SMEP is now opening additional branches.
SMEP’s 2009 gross loan portfolio was USD 12.6 million and total assets were USD 17.5 million, and at that time return on assets (ROA) were 1.01 percent and return on equity (ROE) was 4.72 percent in 2009 [1].
By John Howard-Smith, Research Associate
About Standard Chartered: Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. The bank has approximately 1,750 branches in 70 countries. Since the 1990’s, Standard Chartered has focused on developing its franchises in Asia, Africa and the Middle East. As of 2008, Standard Chartered had extended USD 385 million in loans to 52 microfinance institutions, with an average loan size of USD 7 million.
About Small and Micro Enterprise Programme (SMEP): SMEP began as a relief program in Nairobi, Kenya in 1975. In 1999 it registered as an independent microfinance institution (MFI). SMEP has 20 main branches and 13 satellite branches throughout Kenya. As of 2009, SMEP served 85,700 active borrowers with an average loan balance of USD 145. SMEP’s 2009 gross loan portfolio was USD 12.6 million and total assets were USD 17.5 million, and at that time return on assets (ROA) were 1.01 percent and return on equity (ROE) was 4.72 percent.
[1] Information submitted by Standard Chartered to MicroCapital.org, November 2010, “Standard Chartered Kenya Provides Funding to Small & Micro Enterprise Programme (SMEP)”
MicroCapital’s Microfinance Universe profile: Standard Chartered, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC
MicroCapital’s Microfinance Universe profile: Small and Micro Enterprise Programme (SMEP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SMEP
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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