Under the terms of the partnership, the companies are set to launch a supply chain finance (SCF) programme that will see the early settlement of invoices between buyers and suppliers in Kenya.
The partnership comes at a time when there is increased concern on how SMEs can have access to working capital. This is compounded by existence of stretched commercial terms between buyers and sellers that includes delays in invoice settlement.
As part of its SME transformation agenda, KCB is launching a reverse factoring programme by working with buyers and supplier base to automate the early payment of approved invoices. The programme is a buyer-led invoice discounting method and is based on the buyer introducing it to his/her suppliers.
In this arrangement, eBiashara will supply the IT platform that allows the bank to provide on-line invoice discounting services that can process invoices simultaneously while at the same time helping the bank with training, product development and the on-boarding of buyers and suppliers.
eBiashara is a joint venture between Financial Access Capital Partners and Telemedia Africa. eBiashara is a commercial offspring of the Finance4Agriculture (F4A) programme aimed at stimulating the financing of food and agriculture. Under the terms of F4A, eBiashara has been mandated to implement SCF product solutions for financial institutions.
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