Kenya small business payments boost from CBA-fintech tie-up

Friday 15 June 2018 09:30 CET | News

Kenya-based bank CBA has teamed up with a local financial technology company to speed up payments for goods or services delivered by suppliers.

The new service will be hosted on an online platform run by fintech Ennovative Capital, a Kenya-based company that licences the software from US developer PrimeRevenue. Late payments for goods and services are a 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.

Companies 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.

The service is also seeking to harness technology since it is web-based, cutting a lot of administrative challenges and paper work. 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.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: CBA, fintech, payments , financial technology, Ennovative Capital, African Guarantee Fund, supply chain finance
Countries: World

Industry Events