KCB to boost SME lending with IFC fund

Aug 10, 2011

The International Finance Corporation (IFC) has provided a Sh9.6 billion (€71 million) fund to Kenya Commercial Bank (KCB) for it to increase lending to small and medium-sized enterprises.

The International Finance Corporation (IFC) has provided a Sh9.6 billion (€71 million) fund to Kenya Commercial Bank (KCB) for it to increase lending to small and medium-sized enterprises.

Portions of the finance will be distributed to businesses in Sudan, Rwanda, Uganda and Tanzania and the cash will also be used to improve the housing sector in Kenya.

KCB will be able to increase its lending to Kenyans wishing to purchase their own home and Director for East and Southern Africa at the IFC Jean Philippe Prosper stated the move "will have a huge impact".

"Investing in housing enhances economic growth," he remarked.

Chief Executive of KCB Martin Oduor-Otieno added the money will help the bank expand its operations in the property finance market "and help bridge the housing shortage the country faces".

KCB, which boosted its mortgage finance offering with the acquisition of S&L in 2010, will repay the loan over seven years, according to the Daily Nation.ADNFCR-2976-ID-800695738-ADNFCR