When a group of Kenyan business leaders flew to Estonia and Finland with the Absa Business Club earlier this year, the trip was one of several local and international opportunities targeted at firms operating in the country’s technology sector.

Previously, such trips have often seen business leaders travel to China or Dubai in search of business opportunities.

This time however, Absa Bank chose a different route, in what Erastus Muthura, Head of SME banking at Absa Bank of Kenya defines as a shift towards more targeted cross-border business-to-business engagement.

“When we started with the international trips the focus was often on traditional markets like China, Dubai or Turkey,” he explains. “Today however, we are transitioning to a place where we are exploring new markets that are specific to the needs of the members of the Business Club.”

The Business Club run by Absa is just one of several run by commercial banks in Kenya that equip SMEs with knowledge and resources that go beyond financial aid to enable them to scale and expand their businesses.

Absa Bank Kenya hosts 2025 economic forum to drive resilience and growth

Mr. Muthura explains that the business club rose out of the realization that many SMEs often share the same challenges to scaling their enterprises.

“We held forums in different towns and speaking with the business leaders, some similarities in the challenges they face began to emerge and that is how we decided to put them together in a Club,” he explains.

Some of these include managing expansion, hiring and retaining talent, understanding export standards and tariffs, and succession planning among others. According to Mr. Muthura, while access to finance is often listed as a need for many enterprises, the needs served by business clubs goes beyond just providing loans.

“Traditionally, banks have been known for providing finance and if you walk into a banking hall one would expect that you are looking for a loan,” he explains. “However in engaging with enterprises across several sectors what we realise is that financing is just one facet of their business needs.”

Through various interactions that include physical seminars, online training, market research and business trips, members of the business club gain access to a vast wealth of knowledge and resources they would otherwise not get from a simple financial product.

“There is a challenge with some firms, particularly small family-owned businesses that lack the right structures which is normal as many do not take the adequate time to formalise their structures as the business grows,” he explains.

Mr. Muthura explains that the Business Club leans on the data generated by the enterprise itself plus information from market research to present solutions that address the bottlenecks to growth.

“SMEs generate a lot of data from their day-to-day operations and with technology today there is a wealth of information accessible to most right on their smartphones,” he explains.

With the help of both inhouse and external experts, the Club facilitates entrepreneurs to harness this data to create meaningful insights that informs their next growth phase.

“When we recently took a group of about 50 entrepreneurs to Estonia and Finland for a ten day trip earlier this year we focussed on technology because these nations are known for adoption of technology and automation,” he explains.

More than 150 SMEs from the club applied but just a third were accepted owing to the special focus on the sector. Some of the business leaders who met the threshold began reaching out to their counterparts in these countries through online video sessions facilitated by the Business Club.

“For some, by the time they were leaving Kenya they had already signed draft agreements and for them much of the trip was a leisurely experience,” he explains.

Economists have for years exiled the benefits of business associations and local chambers of commerce to SMEs. Entrepreneurs gain access to advisory services and resources they would otherwise not receive without the collective agency of the group.

Business groups also assist in lobbying efforts for new markets of concessions with policy makers banking on the collective strength of their members. This includes export promotion, sector-specific discounts or legislation and technology transfers among others.

“Through the partnerships that we have formed with the government and the different Chambers of Commerce that are active in the country we are able to put together successful excursions like the one we held recently and the feedback from the members continues to be encouraging,” says Muthura.