Unilever and Equity Bank have unveiled a Distributor Financing Solution worth KES.2.4 billion that is set to redefine supply chain efficiency and accelerate economic growth in East Africa.
This initiative is designed to inject vital working capital into Unilever’s extensive distributor network, strengthening manufacturing supply chains, improving product availability, and fueling sustainable growth across regional markets.
According to Equity Bank, this collaboration goes beyond a typical financing agreement; it represents a comprehensive effort to empower Small and Medium-sized Enterprises (SMEs), enhance distribution efficiency, and drive inclusive economic growth within the fast-moving consumer goods (FMCG) manufacturing sector.
For the banking sector, this model presents a compelling blueprint for strategic engagement with large manufacturers to unlock new, high-volume credit opportunities within established ecosystems.
Accelerated Access to Capital
Under this innovative partnership, Equity Bank will provide tailored working capital financing to Unilever’s distributors. This direct access to credit is critical, enabling them to:
Improve stock availability by ensuring consistent product supply to meet consumer demands.
Expand market reach by penetrating previously underserved markets, driving sales volume.
Optimise day-to-day operations by providing the liquidity needed for efficient business management.
Unlock growth potential through empowering distributors to scale their businesses and invest in expansion.
Equity Bank contends that this solution directly addresses a persistent challenge for many SMEs, which is access to affordable and flexible financing.
By leveraging Unilever’s established network, therefore, Equity Bank de-risks lending and channels capital precisely where it’s needed most to generate tangible economic activity.
Supply Chain Optimisation and Financial Inclusion
The impact extends far beyond individual distributors. This solution is engineered to optimise Unilever’s critical last-mile delivery, guaranteeing that essential products remain consistently available and accessible to consumers throughout the region.
This translates into stronger, more resilient supply chains that can better withstand market fluctuations and operational challenges. Crucially, this initiative also champions broader financial inclusion.
By extending tailored credit facilities to micro, small, and medium-sized enterprises (MSMEs) within Unilever’s vast ecosystem, Equity Bank is leveraging its innovative financial products to bring previously underserved businesses into the formal financial sector. This deepens market penetration and fosters a more robust financial ecosystem.
Banking on Entrepreneurs
Moses Nyabanda, the Managing Director of Equity Bank Kenya, articulated the profound strategic alignment underpinning this collaboration.
“Our mission is to empower consumers, businesses, and communities,” said Nyabanda.
“This collaboration with Unilever allows us to extend affordable, accessible credit to traders who form key drivers of Kenya’s economy. With Equity’s reach across all 47 counties, we’re positioned to scale this quickly,” he added.
Nyabanda emphasised the critical role of manufacturing in Kenya’s economy, noting its 7.8% contribution to national GDP.
“We are proud to partner with Unilever to offer tailored distributor financing solutions. This initiative not only empowers SMEs but also fosters inclusive economic growth by channelling capital to where it’s needed most: into the hands of entrepreneurs who drive the supply chain from end to end,” he noted.
For banks looking to contribute meaningfully to national economic agendas while securing profitable ventures, this model serves as a powerful precedent, he observed.
Commitment to Sustainable and Inclusive Growth
Luck Ochieng, the Unilever East Africa Managing Director, highlighted the transformative nature of the partnership for their 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,” Ochieng stated.
He lauded Unilever’s unwavering commitment to sustainability and inclusive growth, which ensures that “every distributor, regardless of size or location, has the tools to thrive.”
Ochieng noted the substantial investment flowing through this system, saying, “By investing close to KES 2.4 billion annually, we are not only strengthening our supply chain but also creating meaningful employment and promoting economic development within our business communities across Kenya.”
Banking Success in FMCG Supply Chains
For the banking sector, the Equity Bank-Unilever partnership offers a compelling blueprint:
De-risked Lending
Partnering with established manufacturers like Unilever provides inherent credit quality due to the structured nature of their supply chains.
Scalable Opportunities
The vast networks of FMCG distributors represent a massive, largely untapped market for working capital and other financial products.
Strategic Market Penetration
Banks can significantly expand their reach into the SME segment and foster financial inclusion by embedding themselves within existing, robust business ecosystems.
Boosting National Development
Aligning with manufacturing and SME growth objectives positions banks as key drivers of economic development and stability.
This collaboration marks a significant step forward in optimising financial flows within the FMCG sector, demonstrating how strategic partnerships between financial institutions and major manufacturers can unlock unprecedented value, foster inclusive growth, and build more resilient economies across East Africa.