Kenyan bank secures US$50 million loan to support SMEs

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The World Bank’s private sector arm, the International Finance Corporation (IFC) and FMO, the Dutch entrepreneurial development bank, on Thursday announced a loan to Kenya’s I&M (Investments & Mortgages) Bank of 5.5 billion shillings (about 50 million U.S. dollars) to support small and medium-sized businesses in Kenya.

Amena Arif, IFC country manager for Kenya said the financing facility consisting of 30 million dollars from IFC and 20 million dollars from FMO will support the bank’s strategic initiatives, including in business banking solutions ranging from trade and debt finance to business transaction services.

“IFC’s partnership with I&M Bank will help the bank support small and medium-sized enterprises in the country, many of which are struggling amid COVID-19 disruptions. IFC has a prioritized reinforcing capitalization of the banking system to enhance the sectors’ resilience as part of its response to the pandemic,” Arif said in a statement.

Government data indicates that small businesses in Kenya employ about 80 percent of the working population. Since March 2020, IFC has provided loans worth about 395 million dollars to Kenyan companies, including the loan to I&M Bank Limited. I&M Bank operates in Kenya, Uganda, Tanzania, Rwanda, and Mauritius.

The financial assistance will allow the bank to boost economic activity in Kenya by lending to small and medium-sized enterprises mainly in the trade, manufacturing, and construction sectors. Enditem

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