Lender taps Sh5.4b IFC virus loan
Lewis Njoka @LewisNjoka
Diamond Trust Bank Kenya Limited (DTB) has received a Sh5.4 billion ($50 million) loan from the International Finance Corporation (IFC) to support small and medium enterprises (SMEs).
The funds are provided under IFC’s global $8 billion (Sh867 billion) Fast-Track Covid-19 facility, launched in March to protect jobs and support businesses with working and trade-related capital amid the pandemic.
Of the Sh867.2 billion ($8 billion), IFC has earmarked Sh216.8 billion ($2 billion) to the IFC Working Capital Solutions Program to provide funding to emerging-market banks who will then help businesses shore up their working capital needs.
“As an SME bank, we are aware that these businesses are among the hardest hit by the fall-out of the pandemic.
This facility will enable us to support SMEs to address their cash flow challenges, which is a key concern as businesses need easy access to short-term liquidity,” said DTB Chief Executive Officer, Nasim Devji.
“We urge our SME borrowers to take advantage of the facility to ensure their survival during these tough times, as we remain committed to their development,” he added.
IFC Country Manager for Kenya, Manuela Moses, said the corporation is committed to helping countries across Africa meet the unique challenges posed by Covid-19 and also help speed up the process of recovery.
Covid-19 facility
“IFC’s partnership with DTB Kenya is part of our strategy to help businesses in Kenya manage the impacts of Covid-19 so they can continue providing essential goods and services and maintain jobs,” said Moses.
The IFC Covid-19 facility will support existing clients in the infrastructure, financial, manufacturing, agriculture, health, and other sectors vulnerable to the pandemic.
In April, the Central Bank of Kenya reported that SMEs had been hit harder than larger companies by Covid-19 partly due to their challenges in accessing capital.
