Equity Bank and Unilever East Africa have joined forces in a new landmark partnership aimed at unlocking Sh2.4 billion in financing for distributors and traders across the country.
The novel initiative by the two corporate giants seeks to enhance supply chain efficiency, financial inclusion for SMEs, and growth in the manufacturing and retail sectors in Kenya.
The deal is driven by a Distributor Financing Solution tailored to provide working capital to Unilever’s vast distributors network, helping them stock up, expand and meet customer demand.
Eligible Unilever distributors will, via Equity Bank, access credit facilities designed to smoothen operations, manage inventory more efficiently, and grow their businesses without the usual bottlenecks of traditional banking.
“This collaboration with Unilever allows us to extend affordable, accessible credit to traders who are key drivers of Kenya’s economy,” said Equity Bank Kenya Managing Director Moses Nyabanda.
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He added: “With Equity’s reach across all 47 counties, we’re positioned to scale this quickly.”
Small businesses, mainly those in fast-moving consumer goods (FMCG), often struggle to secure funding due to stiff collateral demands, slow approval processes, or limited financial records.
As a result, many operate below capacity, are unable to keep up with growing demand or seize new opportunities, challenges which the Unilever and Equity’s deal seeks to address.
With the new credit facility, small and mid-sized traders will expectedly have easier access to working capital, converting delayed deliveries and empty shelves into a thing of the past.
The pact also supports Kenya’s broader goal of strengthening local manufacturing, a sector that contributed 7.8 per cent to the GDP in the last financial year, according to the Kenya National Bureau of Statistics (KNBS).
According to Nyabanda, Equity Bank views the initiative as a strategic extension of its mission to empower individuals and businesses to enhance economic development.
“This initiative not only empowers SMEs but also fosters inclusive economic growth by channeling capital to where it’s needed most: into the hands of entrepreneurs who drive the supply chain from end to end,” he said.
On the other hand, Unilever East Africa indicated that the partnership is aligned with its long-standing commitment to sustainable and inclusive business growth in the region.
Speaking during the launch, Unilever East Africa Managing Director Luck Ochieng emphasized that the company’s strength lies in the power of its business partners.
“We are delighted to continue empowering our business partners through this transformative partnership with Equity Bank, enabling them to access affordable financing, build capacity, and unlock new commercial opportunities,” intimated Ochieng.
The historic partnership between the two represents a sizeable financial commitment of close to Sh2.4 billion annually dedicated to transforming how distributors operate and grow.
By making it easier for traders to restock shelves, Unilever further hopes to make its products more accessible to all Kenyans from household staples to personal care essentials.
“We are not only strengthening our supply chain but also creating meaningful employment and promoting economic development within our business communities across Kenya,” he concluded.
Another significant pillar of the partnership is last-mile delivery, which ensures that goods get to the final consumer through a reliable network of distributors across the country.
What makes this initiative particularly significant is how it brings together financial inclusion, economic empowerment, and supply chain transformation under one roof.
It is a model with the potential to set a precedent for how banks and manufacturers partner to support micro, small and medium enterprises (MSMEs) to boost the Kenyan economy.
This also aligns with Kenya’s Vision 2030 and the government’s Bottom-Up Economic Transformation Agenda (BETA), which prioritizes SME development and inclusive financial systems.
The financing solution rollout is ongoing targeting to onboard eligible Unilever distributors with Equity Bank set to provide support via its vast branch network and digital platforms.
Meanwhile, Unilever is expected to monitor supply chain performance closely to ensure the solution delivers results both in terms of availability of product and growth of business.
With Equity’s reach and Unilever’s scale, the Sh2.4 billion financing deal is set to uplift thousands of traders, boost consumer access to basic goods, and create new economic opportunities across Kenya.
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