KCB has received a Ksh. 16.4 billion ($150 million) loan from IFC, the SANAD Fund, the Belgian Investment Company for Developing countries and Symbiotics. The loan is meant to help the Bank increase lending capacity for climate-friendly projects and to smaller businesses.

The loan will strengthen KCB’s capital base and allow it to finance eligible projects and businesses. Many of these businesses are facing COVID-19-related challenges, including access to working capital and funds for expansion.

Of the Ksh. 16.4 billion ($150 million), IFC contributed Ksh. 11.2 billion ($101.75 million) and mobilized Ksh. 2.4 billion ($22 million) from BIO, Ksh. 1.6 billion ($15 million) from SANAD Fund, and Ksh. 1.2 billion ($11.25 million) from Symbiotics.

KCB is seeking to build on its existing support for clean energy, green buildings, and climate-smart agribusinesses projects. IFC and the co-lenders will also provide advisory services to help KCB expand lending for green projects and better monitor and support its portfolio.

KCB Group CEO and 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.”

On his part, 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.”

Commenting on the loan issuance, 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.”

IFC’s portfolio is in the country is majorly in the financial, manufacturing, agribusiness, services, and infrastructure sectors.