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Chase Bank has secured a Sh5 billion on-lending facility from African Development Bank (AfDB) for SME lending.
The credit facility will add to the Sh60 billion that the bank had pledged to lend to SMEs during the Global Entrepreneurship Summit last year. The bank has already disbursed loans amounting to Sh30 billion. The bank targets to lend out the remaining sum within three years.
“SMEs are the engine of growth of Kenya’s economy in terms of employment creation and income generation. For the sector to grow sustainably, barriers to access financing will need to be addressed. We are therefore delighted by the partnership we have established with the AfDB to support clients in this business segment that have traditionally been under-served,” said Chase Bank CEO Mr Paul Njaga during the signing of the agreement.
Borrowers will be charged interest depending on their risk profile. Other beneficiaries will be those in building and construction, retail, transport, manufacturing and hospitality.
Mr. Njaga added that the cash would also enable the lender to pursue one of its key mandates of achieving financial inclusivity.
