Guaranty Trust Bank has received a Ksh. 1.7 billion (USD 12 million) loan facility from IF which will help Kenyan businesses, including those with cash flows disrupted by the COVID-19 pandemic, access more financing,
GTBank Kenya 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.
The loan facility is part of the $8 billion (around Ksh. 908.4 billion) IFC Fast Track COVID-19 Facility launched in 2020. The facility is designed to support existing IFC clients in emerging markets affected by the economic fallout from COVID-19.
“The loan will help the Bank meet the working capital and trade-related needs of businesses, especially SMEs that are part of our core clientele. These businesses were adversely affected by the pandemic and are now recovering and reviving as the economy opens up, therefore requiring access to credit,” said Olabayo Veracruz, Managing Director, GTBank Kenya.
“We are 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,” Amena Arif, IFC Country Manager for Kenya added.
Pandemic-related disruptions caused Kenya’s real GDP to contract in 2020, with the country’s smaller businesses hit hard by supply chain disruptions and reduced economic activity.
Although Kenya returned to pre-pandemic growth levels in 2021, 2022 is also proving challenging and smaller businesses still need added support to weather ongoing uncertainties.
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