FCB banks on SMEs to drive growth

Sharia compliant financier First Community Bank (FCB) has credited its primary focus on developing the Small and Medium Enterprises (SMEs) on the significant gain in profits over the last financial year.

The bank’s net profit for the financial year closing on December 31st 2017 quadrupled to close at Sh151.8 million compared to a Sh55.7 million loss in 2016.

The notable gains were achieved in the backdrop of a depressed macroeconomic environment in the country over the last year that saw an extended electioneering period coupled with interest capping for the financial sector by the Central Bank of Kenya.

Speaking during the release of the 2017 Financial Year results, FCB Chief Executive Officer Fazal Saib said focusing on SMEs was part and parcel of the bank’s effort to diversify its clientele base.

“Going forward we are looking to have a balance in the organization so as not to concentrate our risks on any one segment,” Mr Saib said.

Mr Saib further identified SMEs crucial role in contributing to the country’s economic progress.

“This country is built around entrepreneurs and the SME sector. The economy and the country will therefore need this sector to grow,” Mr Saib added.

SMEs are currently the leading contributor to the Kenyan economy and represent a huge potential for financiers who are looking to avail financial products to this lucrative economic sector.

The SME sector currently employs more than 85 percent of the working population and accounts for up to 60 percent of Kenya’s gross domestic product (GDP) according to figures from the Kenya National Chamber of Commerce and Industry (KNCCI).