KCB is aiding small businesses recovering from COVID-19
KCB is aiding small businesses recovering from COVID-19
The bank’s loan package worth up to KSh5 million will help SMEs access capital, address cash flow woes
Nearly a year after the highly contagious Covid-19 struck, the pandemic has hammered small scale businesses across Kenya leaving some permanently edged out of business.
With nearly all sectors of the economy severely challenged – and some cases facing eminent closure of business – the demand for business financing is immense, especially for the micro, small and medium enterprises (MSMEs).
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Kenya’s largest lender, Kenya Commercial Bank, has come to their aid rolling out discounted loans to finance its pool of micro, small and medium enterprises (MSMEs) which are smarting from the effects of COVID-19.
“These business enterprises are the lifeblood of our economy; we are going the extra mile to ensure they are adequately financed to weather these testing times and contribute to economic recovery and growth,” said Annastacia Kimtai, Director Retail, KCB.
Enterprises will receive financial boost of between KShs100,000 and KShs5 million which they will pay back within a period of 36 months. Investors will secure both secured and unsecured financing for the purchase of inventory as well as boosting their working capital to aid their recovery. This shot in the arm will help preserve jobs by strengthening MSMEs’ resilience in the months and years ahead.
To qualify for these loans, however, the MSMEs must be running KCB bank account and must have been in business for at least six months.
“We are working hard to impel economic recovery with a focus on business enterprises. This facility will enable these MSMEs to restart and rebuild as the pandemic-related restrictions continue to be lifted and recovery persists,” she added.
The enterprises, who take up the loans, will also get non-financial services in terms of advisory programs and training on how to navigate through the prevailing dynamic yet unpredictable market terrain.
“We have been working with the county governments to provide facilities to enterprises and cooperative societies whose businesses have been affected by the slowdown in business operations,” Annastacia noted, adding: “So far we have partnered with Laikipia and Kiambu County governments.”
In October last year, KCB received approval for US$150 million, from the International Finance Corporation (IFC) to support the growth of the lender’s sustainable climate finance portfolio and also shore up its lending to micro, small and medium enterprises including investments owned by women.
