KCB , AFDB Bank ink Sh10 billion deal to offer credit to SMEs

African Development Bank and KCB Bank Kenya Limited have today signed a USD 100 million (Sh10 billion) Line of Credit to be used for lending to corporate businesses, Small and Medium Enterprises

The credit will provide liquidity support to businesses in various sectors not limited d to infrastructure, energy and manufacturing.

The LOC will further support population segments like the youth, effectively serving a dual purpose of enhancing job creation as well as facilitating financial access to businesses.

The funding is expected to bolster growth of the Kenyan economy which is known for vibrancy, driven by its diverse and resilient characteristics.

The funding is expected to bolster growth of the Kenyan economy which is known for vibrancy, driven by its diverse and resilient characteristics.

The economy enjoys a unique feature where both the corporate segment and the established SMEs drive economic growth and are also critical in generation of employment, enhancing output diversification, developing indigenous entrepreneurship and forging trade ties not just in the region but globally.

“The subject LOC will bolster KCB’s ability to reach and serve deserving corporate businesses and SMEs businesses in Kenya. It will also enable AfDB to contribute towards KCB’s efforts of broadening access to financing by businesses in Kenya hence performing an important role of private sector development”,  said Gabriel Negatu, the Director General of AfDB’s East Africa.

“This collaboration will enable KCB to continue serving its clients in various business segments as well as play a crucial role in contributing towards creation of employment among the youth,” KCB Group CEO and MD Joshua Oigara said “The funding will “go a long way in the bank’s interventions geared towards achieving the economic transformation of Kenya in line with the Government’s Big Four Agenda.”

This intervention is aligned with AfDB’s Ten Year Strategy, 2013-2022, as well as one of the Bank’s High-5 Strategic priorities of improving the living conditions of Africans. It will help to increase enterprise development and competitiveness through expansion of the economic base.

This will be made possible by enhancing access to financial services and expanding access to social and economic infrastructure which will thus contribute to inclusive growth.

The funding line is expected to further strengthen KCB’s catalytic role in Kenya’s economy as a financial services enabler.


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