|Approval Date||25 Jan 2017|
|Signature Date||06 Oct 2017|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The present project relates to extend a financial package of up to USD 90 million to Commercial Bank of Africa, Kenya (CBA). This financial package will be used for: i) on-lending to small and medium-sized enterprises (SMEs) operating in various sectors of the Kenyan economy and to fund infrastructure projects and ii) supporting CBA’s trade finance activities particularly for the benefit of its SME and local corporate clients. Indeed, these SMEs, which play a key role in the Kenyan economy in terms of job and income generation and are considered to be the basis of Kenya's future industrialization process, face a number of challenges. These include: insufficient access to affordable financing, constraining regulatory environment for businesses, and limited access to modern scalable and affordable technologies. Moreover, the proposed Financial Package is well aligned with the country strategy and complements the efforts of the Kenyan Government (“GoK”) in supporting the development of local corporates and the SME sector.
The objective of this project is to contribute towards reducing financing constraints faced by local corporates and SMEs in Kenya, reducing Africa’s trade financing gap and promoting private sector development and broad-based economic growth through significant job creation, increased intra-Africa trade and closer regional integration, increased productivity and enhance household incomes.
The direct beneficiary of the financial package is the Commercial Bank of Africa (CBA). Thereafter, this funding should be retroceded to SMEs and local businesses.
African Development Bank
|Last Update||31 Oct 2019|