Co-operative Bank of Kenya gets US$ 25mln for women-led MSMEs
NAIROBI, May 6, 2024 – The Co-operative Bank of Kenya has received a US$ 25 million long-term loan from a German fund DEG for lending to women-led micro, small and medium sized enterprises [MSMEs] in the country.
DEG, a subsidiary of KfW Group, announced on Thursday that the loan will help close the gaps in funding for MSMEs.
“The financing from DEG comes at the right time, since there is a great need for stronger backing of businesses that are owned or managed by women,” Gideon Muriuki, the Managing Director of Co-operative Bank said in a statement, adding that the loan facility will boost the bank’s capacity to cover the long-term funding requirements of SMEs.
This marks the latest long-term facility to Co-operative Bank that involves DEG. The German fund last year acted as the lender, leader arranger and facility agent when the bank got a US$ 100mln tier II capital facility from a consortium of financial institutions.
European Fund for Sustainable Development Plus [EFSD+] was used to guarantee part of the US$25mln loan provided by DEG.
“The current investment is an important contribution to supporting SMEs in developing countries in general and SMEs run by women especially, 100 percent of the funds provided will go to female entrepreneurs, Monika Beck, a member of the management board of DEG, said.
She added: The European guarantee is helping to realise this investment which is particularly relevant in view of its development impact, thereby creating jobs and raiding household income locally.”
The Co-operative Bank of Kenya also operates in South Sudan and its loan book grew to Ksh 373.7 billion last year from Ksh 339bln, with Ksh 25.22 being absorbed by MSMEs.
https://thecooperator.news/co-operative-bank-of-kenya-to-pay-shareholders-ksh-8-8bln-in-dividends/
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