UNCDF and Co-Operative Bank of Kenya Sign $900,000 Guarantee Agreement to Expand Financing for Digital Platform MSMEs

The United Nations Capital Development Fund (UNCDF) and the Co-operative Bank of Kenya have signed a $900,000 loan portfolio guarantee agreement under the Digital Platforms Kenya (DigiKen) Programme, aimed at expanding access to finance for micro, small and medium enterprises (MSMEs) operating within Kenya’s growing digital platform economy.

The guarantee facility is designed as a risk-sharing mechanism to encourage increased lending to MSMEs and digital platform- enabled businesses that often face constraints in accessing appropriate financing. The facility supports the expansion of credit to underserved segments while ensuring that credit appraisal, lending decisions, and portfolio management remain fully within the bank’s established risk management frameworks.