It becomes the third local lender after Co-operative Bank and Commercial Bank of Africa to join the group aimed at promoting the financial growth of Small and Medium Enterprises (SMEs).
Equity Bank has joined the SME Finance Forum, a global network managed by the International Finance Corporation (IFC) comprising financial institutions, tech firms and development finance institutions.
It becomes the third local lender after Co-operative Bank and Commercial Bank of Africa to join the group aimed at promoting the financial growth of Small and Medium Enterprises (SMEs).
“Our vision is to be the champion of the socio-economic prosperity of the people of Africa. We value integrity, innovation, and respect for our clients. Becoming a part of the SME Finance Forum touches on each of these values as we learn of the latest innovations in SME finance,” Equity Group Executive Director Mary Wamae said in a statement.
IFC, the financing arm of the World Bank Group, has recently pumped billions of shillings into Kenyan lenders for onward lending to SMEs.
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Early this year, the Equity Bank secured a Sh10 billion long-term loan from IFC to shore up the capital of its Kenyan banking subsidiary and lend to local small and medium-sized firms.
Two months ago, IFC offered Gulf African Bank its technical advisory services at a cost of $368,016 (Sh37 million) that would enable the bank lend more to small and women-owned enterprises.
Co-op Bank secured a Sh15.2 billion seven-year loan from IFC for onward lending to small firms in 2018.
In 2016, the government’s move to cap loan interest rates at four percent above the prevailing central bank policy rate led to banks shying away from private sector lending. The resulting credit crunch hit SMEs hardest as they are perceived by banks as riskier.
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