|Approval Date||25 Oct 2017|
|Signature Date||21 Feb 2018|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The present project is relative to a long term finance to support the business expansion programme of KCB Bank Kenya Limited (KCB) in sectors such as infrastructure, manufacturing and renewable energy. The project entails providing financial support to KCB for the purpose of upscaling its lending to businesses in various economic sectors. For this project, the African Development Bank provide a USD 100 million LOC (7-year maturity, inclusive of a 2-year grace period) to the KBC. Management has selected KCB as a partner owing to its financial resilience and longstanding role as a key financier of the Kenyan economy. It is a market leader in various aspects, among them financial inclusion through mobile phone based micro-lending in largest geographical areas, even in least developed sections of the country, etc. KCB’s Strategic Business Plan 2015-2019 (SBP) focuses mapping its business along key sectors that are pivotal to the country’s economic growth ; Trade, Manufacturing, ICT, Agri-Business and Tourism. The project will help bridge the gap in terms of KCB’s financial outlays compared to available sources of funding to enable the bank better meet its clients’ financial needs. Additionally, providing the proposed resources will enable KCB to bridge the remarkably evident currency mismatch seeing that most infrastructure projects require substantial amount of hard currency while the bulk of the bank’s funding is in the local currency. Finally, the proposed project will significantly boost the bank’s resolve to make a profound impact on youth by investing its own resources to enrich their skills and further link them with business ownership or employment opportunities.
The purpose of the project is to support infrastructure, manufacturing projects and youth-owned enterprises in Kenya.
The project, with its various sub-components will be used to target optimal benefit for various client segments, including SMEs, women entrepreneurs and youth empowerment projects. The anticipated creation of jobs is the biggest source of the proposed project’s household Effects through the provision of long-term funding for projects and firms. Additionally, SMEs are relatively labour-intensive and the dedication of part of the project proceeds towards this business segment is a therefore major boost. The USD 10 million that will be earmarked for promotion of youth employment is expected to have a profound impact with about 5,000 direct jobs targeted through the bank’s KCB Foundation, which will combine derisking funding to deliver training and mentorship to the targeted youth.
African Development Bank
|Last Update||25 Jul 2019|