IFC Advances Ksh 1.6M to Guaranty Trust Bank for Lending to Kenyan SMEs

The International Finance Corporation is set to lend $15 million to Guaranty Trust Bank Kenya for onward lending to small and medium-sized enterprises (SMEs). The loan is part of IFCs funding for small institutions in emerging markets under its Covid 19 crisis response program.

The loans are to be disbursed to companies whose cash flows have been disrupted by the pandemic, helping to boost their working capital among other needs.

“the proposed loan is a one-year loan, with the option to be rolled over for an additional year at IFCs discretion. The loan will provide GTBK additional liquidity support for its operations amidst prevailing economic challenges,” said IFC.

The bank is a subsidiary of Lagos-based Guaranty Trust Holding Company Plc. The Nigerian multinational acquired the Kenyan bank, previously trading as Fina Bank, in December 2013. Guaranty Trust Bank Kenya now has nine branches and focuses on corporate, SME, and personal banking.

The proposed loan to the lender is the latest for the IFC, which has been funding scores of Kenyan banks including KCB and Co-op Bank.