KENYA – Kenya Commercial Bank has secured a US$ 150 Million credit facility to enable it to increase lending to climate-friendly projects and small business enterprises, especially those run by women.
US$101.7 million of the money will come from the International Finance Corporation (IFC) while Belgian Investment Company for Developing Countries (BIO) will provide US$22 million and Sanad fund, which finances SMEs in the Middle East and sub-Saharan Africa, and Symbiotics, the investment platform targeting companies in emerging markets, will contribute US$15 million and US$11.2 million respectively.
“This support from IFC and our partners will help KCB Bank Kenya expand its portfolio of climate-friendly projects and reach smaller businesses at a time when many are facing COVID-19-related challenges. Supporting green projects and smaller businesses will help Kenya recover faster from the current economic slowdown and build a more resilient and sustainable economy,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.
In October 2020, KCB Group’s Kenyan subsidiary obtained a similar US$150 million loan from the IFC to finance environmental and climate change projects in the country.
Companies with short-term cash flow needs as well as those seeking to finance expansion in the country will be eligible for loans from KCB Bank Kenya.
According to the KCB Group Chief Executive Officer & Managing Director, Joshua Oigara, the SME sector is a bank growth area, and this loan will help expand financing to unique market segments like women and youth-owned enterprises that are critical to the economy’s growth.
“This support from IFC and our partners will help KCB Bank Kenya expand its portfolio of climate-friendly projects and reach smaller businesses at a time when many are facing COVID-19-related challenges”Jagun-Dokunmu – IFC Regional Director for Eastern Africa
Dr Daniela Beckmann, SANAD Board Chairperson, said, “We are happy to partner with other lenders to support KCB Bank Kenya increase its outreach to MSMEs, including women-owned businesses across the country in line with SANAD’s mission to support entrepreneurship and job creation.”
Luuk Zonneveld, CEO at BIO, said, “We are very happy with this investment in KCB Bank Kenya, as this investment will allow the institution to continue to provide and expand its services to local SMEs in Kenya, strengthening the local economy in one of our target countries.”
Duncan Frayne, Regional Director for Africa at Symbiotics, said, “Symbiotics sees significant opportunities in green financing and is proud to help KCB Bank Kenya in these initiatives whilst also funding the growth of its SME loan portfolio. Our support also has the potential to promote greater banking sector resilience that will contribute to financial market stability and help the market withstand shocks by boosting capital adequacy.”
Supporting green projects and smaller businesses will help Kenya recover faster from the current economic slowdown.
IFC’s committed investment portfolio in Kenya stood at US$887.3 million as of June 30, 2020.
IFC’s portfolio in the country is predominantly in the financial, manufacturing, agribusiness, services, and infrastructure sectors.
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