IFC has announced it has extended a $15 million loan to Guaranty Trust Bank (Kenya) Ltd, a subsidiary of the Guaranty Trust Group, for lending to local businesses in the country.
GTBank Kenya said it will provide access to finance mainly to small and medium-sized enterprises (SMEs) in the trade, consumer goods, pharmaceuticals, and manufacturing sectors, among others, helping them retain and create jobs, and strengthen their operations.
In a statement, IFC said the facility is designed to support its existing IFC clients in emerging markets affected by the economic fallout from COVID-19.
“We hope to on-lend the facility to customers in the trade, FMCG, manufacturing, and pharmaceutical sectors primarily to fund working capital needs over the next year.” said Olabayo Veracruz, Managing Director, GTBank Kenya.
IFC’s loan to GTBank Kenya is part of the $8 billion IFC Fast Track COVID-19 Facility launched in 2020.
IFC’s Investment in Kenya
Some of the Kenyan bank’s that have secured facilities from IFC most recently include I&M Bank and Equity Bank. Just this month, IFC said it will lend $165 Million to Equity Bank Kenya Limited, in addition to acquiring a 6.7% stake in Equity Bank for KSh 13.9 Billion, shares that were previously held by Britam.
“IFC is committed to supporting Kenya’s private sector, including strengthening its financial sector in order to help the country’s smaller businesses to access more financing.” said Amena Arif, IFC Country Manager for Kenya.
IFC’s investment portfolio in Kenya stood at $940.1 million as of June 30, 2021 with most investments in the finance, manufacturing, agribusiness, and services sectors.