KCB Bank Kenya gets a US $150 million loan for MSMEs and climate-friendly projects

KCB Bank Kenya Limited has secured a loan to increase lending for climate-friendly projects and to smaller businesses, especially those owned by women from IFC, a member of the World Bank Group, The SANAD Fund for MSMEs (SANAD), the Belgian Investment Company for Developing Countries (BIO), and Symbiotics, a leading market access platform dedicated to financing micro-small and medium enterprises and low- and middle-income households in emerging and frontier markets.

The loan of up to $150 million will strengthen KCB Bank Kenya’s capital base and allow it to finance eligible projects and businesses, many of which are facing COVID-19-related challenges, including challenges accessing working capital and funds for expansion. Of the $150 million, IFC contributed $101.75 million and mobilized $22 million from BIO, $15 million from SANAD Fund, and $11.25 million from Symbiotics.

KCB Kenya is now seeking to increase its MSME portfolio and to build on its existing support for clean energy, green buildings, and climate-smart agribusinesses projects, helping Kenya meet its climate targets. IFC and the co-lenders will also provide advisory services to help KCB Bank Kenya expand lending for green projects and better monitor and support its portfolio.

“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,” said Joshua Oigara, KCB Group Chief Executive Officer & Managing Director.

Dr. Daniela Beckmann, SANAD Board Chairperson expressed his excitement saying the partnership with other lenders to support KCB Bank Kenya increase its outreach to MSMEs, including women-owned businesses across the country is in line with SANAD’s mission to support entrepreneurship and job creation in MENA and selected countries in SSA.

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Luuk Zonneveld, CEO at BIO, on his side, said this investment in KCB Bank Kenya will allow the institution to continue to provide and expand its services to local SMEs in Kenya, strengthening the local economy in their target countries.

Commenting on the partnership, 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.”

IFC has made a significant impact on the growth of smaller businesses in Kenya. Its committed investment portfolio in the financial, manufacturing, agribusiness, services, and infrastructure sectors stood at $887.3 million as of June 30, 2020.

“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.

Read Also: KCB owned National Bank of Kenya is now making profits

Enock Bett
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Enock Bett

Digital Media Enthusiast|Tech, Business, Corporate Affairs, Politics, and Governance. [No Modes] EMAIL: [email protected]

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