Equity Bank branch in Kibera, Nairobi, on May 24, 2020. PHOTO | DENNIS ONSONGO | NMG Equity Bank Kenya has secured $50 million (Sh5 billion) loan from the private sector arm of the World Bank for onward lending to small and medium-sized firms crippled by the Covid-19 pandemic.
The International Finance Corporation (IFC) loan will allow Equity Bank to maintain lending to risky small traders and firms, who have been hard hit by the economic effects of the pandemic – lowering their ability to save and tap loans.
“IFC’s loan, part of our business continuity management plan, will help Equity Bank extend much-needed support to our clients, particularly to SMEs in sectors hit hard by Covid-19,” Equity Group chief executive James Mwangi said in a statement on Wednesday.
“I call on customers looking to seize emerging opportunities in the health and medical sectors to manufacture personal protective equipment (PPE) or support the logistics of the entire ecosystems and value chain to take advantage of the $50 million facility,” he added.
The credit line is part of IFC’s global $8 billion fast-track Covid-19 facility it announced in March, and cements the international lender’s position as the largest financier of local banks.
Equity had borrowed a cumulative Sh17.4 billion from the global financier as of December 2019 and the new facility raises the total to Sh22.7 billion.
IFC portfolio in Kenya stood at $884 million (Sh88.4 billion) as of June 30, 2020.