AfDB grants €43 million lending facility to Chase Bank
The funds will support lending to SMEs.Chase Bank has secured a five billion shillings (€43 million) on-lending facility from the African Development Bank (AfDB) to further strengthen its intervention in the small and medium-sized enterprises (SME) sector.
Chief executive Paul Njaga said in a press release that through the new lending facility, the bank will be playing a critical part in addressing income inequalities by on-lending to sectors that have historically been locked out of the credit market.
"SMEs are the engine of growth of Kenya's economy in terms of employment creation and income generation. For the sector to grow sustainably, barriers to access financing will need to be addressed," he said.
Gabriel Negatu, AfDB's Regional Director, Eastern Africa, added that through this facility, the AfDB will help promote SMEs' access to risk capital as well as enhancing the capacity of entrepreneurs in Kenya and Africa in general.
The new facility will grant loans across key sectors of the Kenyan economy including business services, building and construction, retail, transport, communications, manufacturing and the hospitality industry.
Chase Bank, a pan-African financial institution based in Kenya, has committed to set aside 60 billion shillings for SME financing over the next three years.