Equity Group has signed a Sh10.8 billion ($100 million) loan agreement with French development institution Proparco for onward lending to small and medium-sized enterprises (SMEs).
The bank’s chief executive James Mwangi said the funds would be deployed to help Kenyan enterprises alleviate sudden economic disruptions caused by the Covid-19 outbreak.
"The impact of the Covid-19 pandemic started as a health crisis, which quickly became an economic crisis and humanitarian crisis that has seen almost 40 percent of Kenyan small business owners effected by the great economic shutdown in business," Mr Mwangi said in a statement.
"Equity’s goal is to keep the lights of the economy on so as to to support lives and livelihoods and as the economy begins to open up, our partnership with Proparco will help us to support quick recovery of their businesses and most importantly their growth out of the crisis.”
Last year, Proparco which is a subsidiary of Agence Française de Développement (AFD) signed another Sh2.4 billion ($22.8 million) financing deal with Equity in partnership with the German development financial institution Deutsche Investitions- und Entwicklungsgesellschaft mbH or DEG.
"AFD Group is delighted to work once again with Equity Bank, whose dedication to SMEs in Kenya make it an important partner of the French initiative Choose Africa," said AFD group’s CEO Remy Rioux on the latest loan deal.
Private sector credit grew 8.3 percent in the year to August, compared to 7.6 percent in the 12 months to June according to the Central Bank of Kenya (CBK).