Nairobi, Kenya, March 16, 2021—IFC, a member of the World Bank Group, The SANAD Fund for MSMEs (SANAD), the Belgian Investment Company for Developing Countries (BIO), and Symbiotics today announced a loan to KCB Bank Kenya Ltd to help the bank increase lending for climate-friendly projects and to smaller businesses, especially those owned by women.
The loan of up to $150 million will strengthen KCB Bank Kenya's capital base and allow it to finance eligible projects and businesses, many of which are facing COVID-19-related challenges, including challenges accessing working capital and funds for expansion.
Of the $150 million, IFC contributed $101.75 million and mobilized $22 million from BIO, $15 million from SANAD Fund, and $11.25 million from Symbiotics.
KCB Kenya is seeking to increase its MSME portfolio and to build on its existing support for clean energy, green buildings, and climate-smart agribusinesses projects, helping Kenya meet its climate targets.
IFC and the co-lenders will also provide advisory services to help KCB Bank Kenya expand lending for green projects and better monitor and support its portfolio.
KCB Group Chief Executive Officer & Managing Director, Joshua Oigara, said, "The SME sector is a growth area for the bank and the loan will help expand financing to unique market segments like women and youth-owned enterprises that are critical to the growth of the economy."
Dr. Daniela Beckmann, SANAD Board Chairperson, said, "We are happy to partner with other lenders to support KCB Bank Kenya increase its outreach to MSMEs, including women-owned businesses across the country in line with SANAD's mission to support entrepreneurship and job creation in MENA and selected countries in SSA."
Luuk Zonneveld, CEO at BIO, said, "We are very happy with this investment in KCB Bank Kenya, as this investment will allow the institution to continue to provide and expand its services to local SMEs in Kenya, strengthening the local economy in one of our target countries."
Duncan Frayne, Regional Director for Africa at Symbiotics, said, "Symbiotics sees significant opportunities in green financing and is proud to help KCB Bank Kenya in these initiatives whilst also funding the growth of its SME loan portfolio. Our support also has the potential to promote greater banking sector resilience that will contribute to financial market stability and help the market withstand shocks by boosting capital adequacy."
Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa, said, "This support from IFC and our partners will help KCB Bank Kenya expand its portfolio of climate-friendly projects and reach smaller businesses at a time when many are facing COVID-19-related challenges. Supporting green projects and smaller businesses will help Kenya recover faster from the current economic slowdown and build a more resilient and sustainable economy."
IFC's committed investment portfolio in Kenya stood at $887.3 million as of June 30, 2020. IFC's portfolio is in the country is predominantly in the financial, manufacturing, agribusiness, services, and infrastructure sectors.
About KCB Bank Kenya Limited
KCB Bank Kenya Limited is the largest commercial bank in the country. A subsidiary of KCB Group Plc, the Bank has the largest branch network, with 207 branches, 256 ATMs and 20,801 agents offering banking services on a 24/7 basis in East Africa. This is complemented by mobile banking and internet banking services with a 24-hour contact center services for our customers to get in touch with the Bank. KCB Group Plc, which also owns the National Bank of Kenya, has banking presence in Uganda, Tanzania, South Sudan, Burundi, Rwanda and a representative office in Ethiopia also boasts of a wide network of correspondent relationships totaling over 200 banks across the globe and our customers are assured of a seamless facilitation of their international trade requirements wherever they are. For further information, please visit https://ke.kcbgroup.com/
Press contact: Judith Sidi Odhiambo-Head of Corporate & Regulatory Affairs; email: jsodhiambo@kcbgroup.com
About BIO
The focus of the Belgian Investment Company for Developing countries (BIO) is to support a strong private sector in developing and emerging countries, to enable them to gain access to growth and sustainable development within the framework of the Sustainable Development Goals. For more information, visit https://www.bio-invest.be/en/about-bio
Press contact: Ben Jehaes, External Relations Manager; email ben.jehaes@bio-invest.be
About SANAD
The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa and selected countries in sub-Saharan Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. For more information on the SANAD Fund for MSME, please visit: www.sanad.lu .
For more information on Finance in Motion, please visit: www.finance-in-motion.com
Press contact: Nikki Eggers, Senior Officer, Marketing & Communications; email: press@sanad.lu
About Symbiotics
Symbiotics is the leading market access platform for impact investing, dedicated to financing micro-small and medium enterprises and low- and middle-income households in emerging and frontier markets. Since 2005, Symbiotics has structured and originated some 4,000 deals for over 490 companies in almost 90 emerging and frontier markets representing more than USD 6.5 billion. These investments have been purchased by more than 25 fund mandates and more than 50 third party specialized fund managers, forming a growing ecosystem and marketplace for such transactions. For more information, visit https://symbioticsgroup.com/
Press contact: Samy Derradji, Corporate Communications Manager; email: samy.derradji@symboticsgroup.com
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
Stay Connected
Contacts
Stay Informed
Sign up to have customizable news & updates sent to you.