Small and Medium-Sized Enterprises (SMEs) that were hit extremely hard by the impact of the coronavirus will benefit from Co-operative Bank Sh6 billion funding.
This is after the bank received Sh6.3 billion ($56.06 million) from the European Investment Bank for onward lending to small businesses to help them recover from the impact of the Covid-19 pandemic.
Co-op Bank Chief Executive Officer Gideon Muriuki said the lending is part of the bank’s effort to contribute to the recovery of Kenya’s businesses following the pandemic challenges.
“The credit facility will be available for up to a maximum of Sh1.5 billion ($13.3 million) per customer for a maximum tenor of seven years,” he said.
“Co-operative Bank commitment to the SME sector in Kenya will ensure that this facility will be available immediately.”
The firms with up to 250 workers can apply for the long-term loan which will be repayable in seven years and will assist MSMEs fund the acquisition of tangible business assets, working capital, development of distribution networks innovation and business research.
Around the world, small businesses have been hit extremely hard by the impact of the coronavirus.
As healthcare workers and policy-makers around the world deal with the pandemic, SMEs in fast-growing economies are particularly vulnerable as they contend with reduced demand, disrupted supply chains and worsening lack of finance.
Now, more than ever, it is vital that SMEs are provided with the necessary financial backing to support their employees, their communities and to give hope to the millions of people who need them to survive.
