EIB partners with East African banks on credit facility
A Euro 250 million (Sh27 billion) credit facility has been approved by EIB to companies through local banksAs a consolidation to a Sh10billion credit facility issued in 2016, the European Investment Bank
(EIB) has issued another Euro 250 million (Sh27 billion) credit facility to spur growth of local companies in East Africa. The credit facility which will be channelled through local banks will be issued through partner financial institutions in East Africa. In the distribution of the fund, Kenya Commercial Bank will handle Sh3.1 billion as the biggest channel of disbursement. The fund will be disbursed to entrepreneurs in Rwanda, Tanzania and Uganda,
respectively. In a similar development, a Sh3 billion lending scheme to support 46 local firms has been signed by Bank of Kigali. Sh2 billion will be disbursed by HFC to support medium sized companies in Kenya. Having understood the roles of entrepreneurs in spurring growth and reducing unemployment, EIB is committed to supporting growth of small and medium scale businesses. In 2016, 49 percent of EIB's lending facility in Africa supported small and medium scale businesses.