The open air shop in Ruiru along the Nairobi Thika superhighway. SME’s as key drivers of vision 2030, being a sector that accounts for 75% of the total workforce. Photo/ Jack Owuor Kenya Commercial Bank has received $150 million from the International Finance Cooperation (IFC) and partners for onward lending to small scale women traders.
The loan will strengthen the bank’s capital base and allow it to finance eligible green projects and businesses, many of which are facing Covid-19 related challenges.
The latest Central Bank of Kenya report indicates that at least 75 per cent of small and medium-sized businesses face collapse unless they receive fresh capital injection.
IFC contributed $101.75 million and mobilided the rest from the Belgian Investment Company for Developing Countries (BIO), SANAD Fund and Symbiotics.
IFC and the co-lenders will also provide advisory services to help KCB expand lending for green projects and better monitor and support its portfolio.
KCB Group MD Joshua Oigara, said, the SME sector is a growth area for the bank and the loan will help expand financing to unique market segments like women and youth-owned enterprises that are critical to the growth of the economy.
"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 Jagun-Dokunmu, IFC regional director for Eastern Africa.
IFC’s committed investment portfolio in Kenya stood at $887.3 million as of June 30, 2020.
It is predominantly in the financial, manufacturing, agribusiness, services, and infrastructure sectors.