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Kenya small businesses to tap IFC’s planned Sh6.7bn fund
The proposed investment in five subsidiaries of Platcorp Holdings in the region will be in the form of a four-year senior loan, with a one-year grace period.
The International Finance Corporation (IFC) proposes to invest up to Sh6.7 billion ($52 million) in microfinance institution, Platcorp Holdings Limited, to boost its liquidity and support lending to micro, small, and medium enterprises (MSMEs) in Kenya and across East Africa.
The proposed investment in five subsidiaries of Platcorp Holdings in the region will be in the form of a four-year senior loan, with a one-year grace period.
“It will be processed under the micro, small, and medium enterprises finance platform – BOP (base of pyramid) envelope.
“The proceeds will provide liquidity and support the microfinance institution’s lending strategy to expand access to finance for MSMEs with a 50 percent target for women-owned MSMEs,” the World Bank private sector lending arm said.
The BOP is a specialised, concessional financing facility of IFC, which supports funding to small businesses.
About Sh2.6 billion ($20 million) will go to two Kenyan subsidiaries of Platcorp Holdings in the form of four-year senior loans to boost the microfinancier’s liquidity for on-lending to small businesses.
The Kenyan subsidiaries are Platinum Credit and Premier Credit.
Some $5million (Sh645.1illion) will go to two of Platcorp’s subsidiaries in Uganda and $2 million (Sh258.4 million) to a subsidiary in Tanzania.
The financing targets underserved entrepreneurs, with a commitment that 50 percent will support women-owned MSMEs, helping to bridge the gender financing gap.
The proposed initiative includes a Sh3.5 billion ($27 million) own account loan and Sh3.2 billion ($25 million) in mobilised funds to support financial access, with a focus on women led businesses.
The project will provide Platcorp with scarce medium-term local currency financing to expand its MSME lending operations across Kenya, Tanzania, and Uganda, where access to affordable longer tenor funding remains limited.
In addition, IFC’s participation is expected to unlock parallel funding at a time when international lenders’ appetite has weakened due to elevated market risk.
IFC will also help Platcorp strengthen its internal operations and adopt responsible finance practices across Kenya, Tanzania, and Uganda.
The Mauritius-based firm, Platcorp Holdings Limited, is a sustainable impact finance institution that focuses on providing affordable lending services to MSMEs and employed individuals across Africa.
Platcorp, which operates brands like Platinum Credit, has positioned itself as a major non-bank lender in East Africa, attracting significant development finance.
The group has twenty operating microfinance companies in Kenya, Uganda, Tanzania, Zambia, the Democratic Republic of Congo (DRC), Barbados, and Saint Lucia.
It operates the following microfinance companies as subsidiaries: Platinum Credit Kenya, Platinum Credit Uganda, Platinum Credit Tanzania, Premier Credit Kenya, Premier Credit Uganda, among others.
In Kenya, other nonlending subsidiaries include Viva 365 Insurance Brokers Ltd and Eezy Track Limited.
