Kenyan fintech firms Pesapal and Sokohela have partnered to launch a new loan product for small and medium-sized enterprises (SMEs).

The two say the facility offers fast and flexible financing solutions to SMEs facing difficulties accessing credit from traditional financial institutions.

According to Pesapal and Sokohela, the facility offers SMEs a range of benefits, such as digital scoring, approval, and disbursement of loans, with no collateral or guarantor required.

Pesapal is a fully licensed startup focusing on online payments in Africa, and Sokohela provides online short-term working capital to SMEs in the urban agricultural value chain.

Agosta Liko, Pesapal founder, comments: "SMEs are the engine of our economy, but they often face difficulty accessing credit due to high-interest rates, stringent collateral requirements, lengthy procedures, and lack of financial records.

"We understand these challenges and have partnered with Sokohela to address them. We're all about our merchants being confident with their financial decisions and becoming world-class at what they do – regardless of their size. We design our tools on the Pesapal platform to help entrepreneurs achieve their business goals without overextending".

For Nickson Onyango, CEO of Sokohela, the partnership is a strategic move to leverage Pesapal's network of merchants.

He says: "We are confident we will unlock new capital streams for SMEs, enabling them to scale efficiently. We are excited to partner with Pesapal, Kenya's trusted and reputable payment service provider. Together, we aim to reach out to more SMEs and offer them convenient and affordable credit solutions that suit their needs. We're supporting SMEs and our country's social and economic development."