NIC Bank and African Trade Insurance Agency  yesterday renewed an agreement that provides collateral for the bank’s SME customers while insuring the loans against any loss.

The bank’s retail director Robert Kibaara said the year old partnership had proved beneficial to customers as well as growing the SME segment for the business.

NIC Bank became the first local bank to take up ATI’s new insurance cover that protects its entire portfolio of trade finance borrowers against the risks of insolvency and non-payment.

ATI chief executive Officer George Otieno, said the growth of the SME sector in Kenya and beyond had greatly been driven by government and private sector support.