Managing cash flow is one of the biggest challenges faced by many small and medium-sized enterprises (SMEs).
From delayed payments from clients, seasonal fluctuations in sales, and unexpected expenses, these enterprises often struggle to meet their day-to-day obligations despite having work in progress or pending invoices.
It is a challenge that has forced many entrepreneurs to postpone supplier payments, delay staff salaries, or even suspend operations temporarily while waiting for customers to settle outstanding bills.
To help businesses bridge these gaps, the Co-operative Bank of Kenya (Co-op Bank) offers MSME Overdraft Facilities designed to provide working capital when it is needed most.
The facility allows businesses to withdraw funds from their current accounts beyond their available balances up to an agreed limit, enabling them to continue operating smoothly while awaiting payments.
The overdraft facility is available for a period of up to 12 months and can be renewed based on performance, giving businesses flexibility to manage their short-term financing needs.
Under the facility, businesses can access different borrowing limits depending on their needs and the security they provide.
Customers under the Bronze category can access unsecured overdrafts of up to Sh600,000 and secured facilities of up to Sh3 million.
The Silver category offers unsecured limits of up to Sh6 million and secured facilities of up to Sh8 million, while Gold customers can access unsecured overdrafts of up to Sh10 million and secured facilities of up to Sh15 million.
According to business owners who have benefited from the facility, access to working capital has significantly reduced the pressure they previously experienced when running their businesses on limited resources.
“There are times when we deliver materials to large projects and have to wait several weeks before payment is processed. During that period, suppliers still expect to be paid, and business expenses continue. The overdraft facility has helped us bridge that gap without interrupting operations,” says Peter Mwangi, a Nairobi-based Hardware supplier.
Mwangi notes that the ability to access funds quickly has enabled him to maintain healthy relationships with suppliers and take on larger orders with confidence.
Similarly, Grace Wanjiku, who runs a food processing enterprise in Nakuru, says the facility has helped her manage seasonal fluctuations in demand.
“Our business experiences periods when orders increase sharply, requiring us to purchase more raw materials. Sometimes customer payments take longer than expected. Having access to an overdraft means we can continue production and meet customer demand without delays,” she explains.
She adds that the facility has enabled her company to maintain a consistent supply while avoiding disruptions that could affect customer trust and future business opportunities.
How to get started
Customers interested in this facility are directed to visit the nearest Co-op Bank branch countrywide.
Also Read: Co-op Bank named ‘SME Bank of the Year in Africa’ at the 2026 African Banker Awards
