Markets & Finance

Chase Bank secures Sh5 billion AfDB facility for SMEs


Chase Bank CEO Paul Njaga. FILE PHOTO | DIANA NGILA |

Mid-tier lender Chase Bank has secured a Sh5 billion ($50 million) facility from the African Development Bank (AfDB) for on-lending.

Chase Bank chief executive Paul Njaga said the facility, already approved by the AfDB board, will enable the firm to boost its lending capacity to small and medium enterprises.

The loan will mainly benefit the youth who depend on the lender's SME lending portfolio.

“SMEs are the engine of growth of Kenya’s economy in terms of employment creation and income generation. For the sector to grow sustainably, barriers to access financing will need to be addressed. We are therefore delighted by the partnership we have established with the AfDB to support clients in this business segment that have traditionally been under-served," said Mr Njaga during the signing of the agreement.

He added that the cash would also enable the lender to pursue one of its key mandates of achieving financial inclusivity.

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