The Co-operative Bank of Kenya is set to get Sh. 18.1 billion (equivalent to USD140 million at an exchange rate of 129.19 to the US Dollar) from the International Finance Corporation (IFC) to support small businesses in Kenya.
“The most significant, expected Project-level outcome is increased access too micro small and medium enterprises finance in Kenya, particularly for women-owned micro small and medium enterprises,” said IFC in a disclosure on the financing.
“Beyond this outcome, IFC anticipates that the Project has the potential to promote greater banking sector resilience in Kenya via capacity building and the demonstration and replication channel.”
The IFC stated that the financing arrangement with Co-op Bank was approved by the IFC board and signed by both Co-op Bank and the IFC in June 2024. The facility will run for seven years with a two-year grace period for Co-op Bank.
“Co-op Bank is Kenya’s largest bank in terms of number of clients and the fourth-largest bank in terms of total assets with a market share of around 10 per cent. Co-op has an extensive nationwide presence, including outside the main urban areas. Through its network of 193 branches, 608 ATMs, and over 5,000 staff and 18,000 banking agents, the Bank serves more than 9 million customers in the country,” said IFC in the disclosure. The International Finance Corporation is the private sector arm of the World Bank.
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The new financing arrangement comes as Co-op Bank emboldens its position as a leader in financing of small and medium businesses. It comes barely months after Co-op Bank was named as the 2023 best financier of small and medium enterprises (SMEs) in Africa.
“In collaboration with IFC and other partners, we have taken time to listen, study, and build a most competitive value proposition for SMEs intended to support them realize the goals they have set for themselves. We are very encouraged by the successful outcomes we continue to see in the marketplace,” said Co-op Bank Chief Executive Officer and Managing Director Dr Gideon Muriuki when the lender bagged this prestigious award recently.