Commercial Bank of Africa is set to on-lend small and medium-sized enterprises (SMEs) in the country Sh9 billion ($90 million) advanced by the African Development Bank (AfDB).
The package will include Sh5 billion ($50 million) line of credit and Sh4 billion ($40 million) trade finance line, the continental multilateral development lender said.
AfDB said the funding will be channelled to SMEs and local corporates in infrastructure, trade and other transformative sectors in the country.
“It will provide liquidity support to expand financing to local corporates involved in value-addition in the trading, manufacturing, agriculture, infrastructure, transport and construction,” AfDB said.
CBA is the sixth largest of 43 banks in Kenya and has 19 million mobile platform customers.
AfDB said the financial package will contribute to CBA’s efforts to broaden access to its services, thereby reducing financing constraints by SMEs and local corporates while narrowing Africa’s trade financing gap.
“The package will promote private sector development as well as support broad-based economic growth,” said the African lender.
“It will also contribute to CBA’s endeavours to complement efforts of various partners such as the government’s long term development strategic agenda and Vision 2030, which seeks to revitalise the economy by developing infrastructure and improving access to affordable credit for SMEs that support economic transformation,” said the development finance institution.