NCBA has partnered with Water.Org to introduce a new loan product under Water and Sanitation Hygiene (WASH) aimed at financing Water Service Providers (WSPs) and SMEs within the WASH value chain, with the goal of enhancing water supply and expanding access to sanitation services.
The WASH Loan is intended for WSPs and water-sector SMEs that have proven industry experience and can demonstrate strong, consistent cashflows to support repayment.
Product Features and Benefits
| Name |
Water, Sanitation & Hygiene (WASH) Loan Product |
| Loan amount |
Minimum: Kes 300,000
Maximum: Kes 500Mn for Water Service Providers
NB:
The WSPs will be expected to comply with and meet the standard SME Risk acceptance criteria. |
| Loan Tenor |
- Equipment financing – up to a max of 60 months
- Capital Expenditure/Project financing – up to a max of 120 months
|
| Pricing |
- Interest rate: As per the prevailing bank interest rate (risk-based)
|
| Currency |
|
| Security |
- Unsecured for borrowings of up to Kes 6Mn covered by receivables/contracts.
- Credit risk guarantee from signed-up partners.
- Floating debenture over receivables up to the amount of the loan.
- Bank’s acceptable security as provided for in the Group Credit Risk Policy.
|
| Qualification criteria |
The borrowing entity will be expected to meet the following minimum qualifications:
- Must have been in business for at least 2 years
- Must be registered as a business/company under the relevant laws
- Must hold a valid business permit/trade license (where business is not formally registered)
- Must open and operate a bank account at NCBA with an expected 80% Share of Wallet within 12 months.
|
| Documentation |
- Copy of Service Provision Agreement (License to provide water and sanitation services) between WSP and the respective Water Service Board.
- Copy of Water Service Provider approved tariff.
- Minutes of the Board of Directors’ approval of the project.
- Engineering drawings and Bills of quantities (BoQs)
- Project implementation plan and Market assessment report
- Project team profiles, registration certificates & practicing licenses.
- Environmental impact assessment (EIA) report
- Duly executed Environmental and Social Due Diligence (ESDD) report
- Water Resources Authority abstraction license (where applicable)
- The license granted to WSP by the Water Services Regulatory Board (WASREB) for the provision of water services. (where applicable)
- A valid extraction license from the Water Resources Management Authority (WARMA) to be availed. (where applicable)
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I am Interested