KCB offers recovery loans for small enterprises

Small businesses hurt by the economic impact of the Covid-19 pandemic will start receiving loans from KCB #ticker:KCB to help them regain their footing.

The health and economic crisis have hurt SMEs and even large businesses that are reporting reduced sales and thinner margins.

SMEs, which rely heavily on debt to finance their operations, will receive credit facilities of between Sh100,000 and Sh5 million if they qualify for the KCB loans.

The borrowings will be payable in 36 months. Only businesses that have been running accounts with the bank for at least six months are eligible.

“This facility will enable these MSMEs to restart and rebuild as the pandemic-related restrictions continue to be lifted and recovery persists," said KCB Bank Kenya retail director Annastacia Kimtai.

This comes after the bank received Sh16.5 billion (S$150 million) in October 2020 from the International Finance Corporation (IFC) to scale up lending to micro, small and medium enterprises including women-owned businesses.

The fund will also be used for green financing.

The lender has so far partnered with two counties of Laikipia and Kiambu to disburse the small loans.

“We have been working with the county governments to provide facilities to enterprises and cooperative societies whose businesses have been affected by the slowdown in business operations,” Ms Kimtai said.

A research carried out by Nairobi–based Viffa Consult showed that MSMEs require Sh250,000 in capital support on average to get back in shape with only eight percent needing more than Sh1 million.