I&M Bank has received more than $50 million (Sh5.35 billion) from two development financiers for lending to small businesses. The listed lender is targeting local medium-sized enterprises in the trade, manufacturing and construction sectors.
The cash is from the World Bank’s private sector arm – the International Finance Corporation (IFC) and the Dutch entrepreneurial development bank FMO. “To help smaller businesses across a range of sectors in Kenya access financing for working capital, expansion, and to weather the effects of Covid-19, IFC and FMO announced a loan to I&M Bank of $50 million,” said IFC in a statement.
With IFC contributing $30 million (Sh3.21 billion) and FMO contributing $20 million (Sh2.14 billion), the financial arrangement comes with a training package for the bank’s staff. “As part of their support, IFC and FMO will train I&M Bank staff on green financing so the bank can better support green investments, including renewable energy and climate-smart agriculture.”
I&M Chief Executive Kihara Maina said the funding would help micro-small and medium enterprises accelerate growth and support expansion efforts while cushioning them from the effects of Covid-19.
