Co-operative Bank has secured 13.8 billion ($100m) from a consortium of financial institutions to facilitate on-lending to Micro, Small and Medium-sized Enterprises (MSMEs) in Kenya.
Co-operative Bank Group Chief Executive Officer Dr. Gideon Muriuki said the facility provided by the group led by DEG and has been fully disbursed is a significant support to the bank especially as the bank embarks on digitization with the recent transition to a new, robust core banking system.
“The funding by DEG and the Consortium is most timely in view of the great need to better support our business customers. In addition, the long-term tenure of the facility has significantly boosted the bank’s ability to offer solutions that are better structured to fulfil the long-term financing needs of MSMEs,” said Muriuki.
The consortium included The Africa Agriculture and Trade Investment Fund (AATIF), Micro Small Medium Enterprises Bonds (MSMEB) and European Development Finance Institutions comprising Finnfund, Norfund and the co-financing facility European Financing Partners (EFP).
“By acting as lead arranger and providing the subordinated loan to Co-op Bank, DEG contributes to the further development of Kenya’s financial sector and the wider economy through the creation of jobs and local income, all geared towards the attainment of Sustainability Development Goals,” added Monika Beck, Member of DEG’s Management Board.
Co-op Bank currently has more than 17,000 MSME customers accounting for at 16.9pc of its total loan book.