New low-interest loans launched for Kenyan SMEs
Equity Bank and KfW have signed a new deal that will make it easier for Kenyan small and medium-sized enterprises (SMEs) to access finance.The Sh2 billion (€17 million) deal will see funding distributed to businesses in dollars with interest set at between five and 12 percent depending on their credit rating, the Daily Nation reports.
Borrowing rates are currently at around 25 percent in Kenya and this has resulted in a decline in the number of loans taken out by SMEs.
Regional Director at KfW Thomas Duve said SMEs are the backbone of the economy and the initiative will provide them with a boost.
Equity Group boss James Mwangi added: "The loan will enhance Equity Bank's funding activities to small-scale export businesses in Kenya and other East Africa countries."
At the end of last month, the financial institution joined a programme called Wings to Fly that offers funding to top-performing but financially needy children in Kenya.