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Co-operative Bank secures Sh5.5bn World Bank loan for SMEs

Co-operative Bank of Kenya managing director, Gideon Muriuki. He says growing the bank’s loan book is priority. Photo/File
Co-operative Bank of Kenya managing director, Gideon Muriuki. He says growing the bank’s loan book is priority. Photo/File 

Co-operative Bank is set to receive a Sh5.5 billion ($65 million) loan from the World Bank’s private lending arm, IFC, to increase lending to small businesses and farmers.

The seven-year loan consists of Sh5.1 billion ($60 million) for onward lending to SMEs and agri-based businesses and another Sh425 million ($5 million) under the International Finance Corporation (IFC’s) global trade finance programme.

“The primary objective of the project is to support the bank’s growth, address its balance sheet maturity mismatch, and help it meet its dollar funding needs,” says the IFC in disclosure notes on the intended loan disbursement.

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