Diamond Trust Bank Kenya Limited (DTB) today announced that it has partnered with the International Finance Corporation (IFC) to advance loans to small businesses in Kenya during the pandemic.
DTB has received a KSh 5.4 billion senior loan with a one-year renewable tenor from the World Bank to loan to borrowers, explicitly targeting the country’s SMEs.
The IFC funds will help address cash flow challenges among small businesses by offering the much needed short term liquidity needed during COVID-19. An IFC disclosure reveals that the funds will also help DTB “meet the COVID-19 related working capital and trade-related needs of its clients”.
Speaking on the facility, DTB Group CEO and Managing Director Nasim Devji called customers to take advantage of the facility saying,
“This facility will enable us to support SMEs to address their cash flow challenges, which is a key concern as businesses need easy access to short-term liquidity. We urge our SME borrowers to take advantage of the facility to ensure their survival during these tough times, as we remain committed to their development.”
DTB Loan Part of IFC’s $2bn Loan Kitty for Banks in Emerging Market
The DTB loan is part of IFC’s $2 billion set apart from the Working Capital solutions program to allow banks in emerging markets to loan to SMEs. IFC set apart $2 billion out of its $8 billion for the COVID-19 Emergency Response Working Capital Solutions (WCS) Envelope to address working capital needs during the pandemic.
IFC’s partnership with DTB Kenya is part of our strategy to help businesses in Kenya manage the impacts of COVID-19 so they can continue providing essential goods and services and maintain jobs. IFC is committed to help countries across Africa meet the unique challenges of COVID-19 and also speed the process of recovery.Manuel Moses, IFC Country Manager for Kenya.
The World Bank organization believes that supporting client banks will fast track economic recovery in the private sector, allowing vulnerable people to return to their income-earning activities.
Last month, IFC granted Equity Group a similar loan to increase the bank’s lending to SMEs.