Finance

Kenya: African Development Bank Group approves $8 million to Credit Bank for SMEs

Kenya: African Development Bank Group approves $8 million to Credit Bank for SMEs
Thursday, 18 July 2019 19:19

The Board of Directors of the African Development Bank Group on Wednesday approved a $8 million-targeted financing to Kenya’s Credit Bank for lending exclusively to small and medium enterprises (SMEs) in construction, agriculture, renewable energy and manufacturing.

The loan, which has a five-year maturity with a two-year grace period, marks the first proposal under the Bank’s new initiative to prop-up SMEs in Africa. Credit Bank is privately-owned and dedicated to propelling SMEs’ growth through financing and capacity building initiatives.

It is financially sound and, as an adequately capitalized tier-3 financial institution, has a strong track record of SMEs, providing working capital and trade finance facilities.  As such it is well-positioned to succeed in providing innovative longer term financial solutions to SMEs along several value chains including strategical financial solutions in Kenya,” Stefan Nalletanby, Bank Group director for financial sector development, told the Board.

Nalletanby said that Credit Bank has the supporting infrastructure and a strong presence in key economic regions within Kenya and is expected to support several small businesses in rural areas, thereby producing substantial development impact.

The over-arching objective of the project is to provide access to finance to SMEs, the “missing middle” in Kenya, thereby reducing their financing gap. The facility’s proceeds will support transactions aimed at improving their productive capacities thereby enhancing entrepreneurship, job creation, income generation, and sustainable growth, leading to a multiplier effect on the country’s economic growth, according to the Bank.

The facility also fits well with four of the Bank’s High 5 strategic priorities of “Improve the quality of life for the people of Africa,” “feed Africa;” “Light and power Africa,” and “Industrialize Africa”. It also aligns with the financial sector development policy and strategy and will contribute to the Bank’s Jobs for Youth Programme and the Affirmative Finance Action for Women in Africa programme.

24968 in Agency agrf jennifer blanke agrf afdb copy copy copy

On the same topic
Income tax threshold to rise to 30,000 shillings per month Government aims to ease cost-of-living pressures and boost household...
Phatisa reaches $86 million first close for food fund Backed by BII, IFC, and other development finance institutions Fund targets Africa’s food...
Gabon Loisirs et Tourisme acquires Newrest Gabon operations Deal covers 300 employees, nine sites, and industrial catering services Takeover...
PenCom licenses Awabah as the first approved pension agent Move targets informal and self-employed workers under the micro pension scheme Reform aims...
Most Read
01

Deposits grow 2.7%, supporting lending recovery Average loan sizes small, credit risk persists ...

Togo Microfinance: Deposits and Loans Rise Simultaneously in Q3 2025
02

Oil majors expand offshore exploration from Senegal to Angola Gulf of Guinea accounts for about 1...

Gulf of Guinea regains appeal as a key exploration hub for oil majors
03

MTN is considering buying back telecom towers it sold years ago, signalling that control of infras...

MTN’s Talks to Buyout IHS: A Strategic Reversal That Could Reshape African Telecoms
04

Rwanda, partners break ground on $2 billion Kigali Innovation City Smart city targets ...

Rwanda Mobilises Global, Local Finance for $2Bln Innovation City Targeting Africa’s Digital Economy
05

The BCEAO granted Semoa a level-3 “full service” payment institution license on January 27, 2026...

Togolese Fintech Semoa Wins Full-Service BCEAO License
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.