KCB has received a $100 million (about Sh. 10.37 billion) loan from the African Development Bank (AfDB) for onward lending to small and medium sized enterprises (SMEs) in the region.
The Abidjan-based multilateral development bank noted the credit will contribute towards enhancing job creation as well as facilitating financial access to businesses.
“The funding is aimed at supporting KCB’s lending in Kenya especially to corporate businesses, small and medium enterprises (SMEs) as well as projects that are critical to the development of Kenya’s economy,” said the multilateral lender in a statement.
This will come as a relief to the small and medium enterprises sector, especially at a time when small businesses have been facing a credit crunch. Kenya has been on a credit squeeze since September last year, with banks rationing loans following the introduction of interest rate capping.
Currently, all loans in the country are capped at no more than 14 per cent
“Proceeds of the line of credit will provide much-needed liquidity support to, among other sectors, infrastructure, energy and value-addition through manufacturing and important population segments like the youth,” AfDB further said.
Early this month, AfDB signed a $90 million (about Sh. 9.29 billion) facility with Commercial Bank of Africa, the country’s largest privately-owned lender with CBA eyeing to finance firms in trade, manufacturing, agriculture, infrastructure, transport, and construction.
