The European Investment Bank (EIB) is partnering with the Cooperative Bank of Kenya to finance companies active in sectors most affected by the COVID-19 pandemic.
The business financing program of up to Ksh. 6.3 billion (EUR 50 million) will also be supported by European Union grants.
The financing scheme will include supporting companies in sectors most impacted by the trade, economic, tourism and health challenges triggered by COVID-19. This is expected to unlock investment to accelerate private sector recovery from the pandemic.
Kenyan companies will be able to access long-term loans in local currency, with tenors of up to 7 years, far longer than usually available.
The European Investment Bank is the world’s largest international public bank. Last year, the bank provided more than Ksh. 633 billion (EUR 5 billion) for new investment across Africa.
The Co-operative Bank of Kenya and the European Investment Bank have worked together to finance investment across Kenya since 2003. This long-standing partnership has financed expansion of manufacturing, education, agriculture, transport and logistics firms and supported thousands of jobs.
Thanking the EIB, Dr. Gideon Muriuki, Group Managing Director and CEO of The Co-Operative Bank of Kenya on his part added, “Co-operative Bank’s commitment to the SME sector in Kenya will ensure that this facility will be available immediately to fund acquisition of tangible business assets, working capital, development of distribution networks, innovation and business research among others, and contribute to the recovery of Kenya’s businesses following the covid-19 challenges.”