The EU’s European Investment Bank (EIB) and the Co-operative Bank of Kenya, a publicly traded commercial and investment bank, recently partnered to channel EUR 50 million (USD 56 million) to Kenyan “companies active in sectors most challenged by the COVID-19 pandemic.” In particular, the line of credit from EIB will enable firms with up to 250 employees to access local-currency loans “with tenors of up to 7 years, far longer than usually available.” The maximum amount of each sub-loan is set at KES 1.5 billion (USD 13 million).
The Co-Operative Bank CEO Dr Gideon Muriuki stated that his bank “will ensure that this facility will be available immediately…and contribute to the recovery of Kenya’s businesses following the COVID-19 challenges.”
The Co-operative Bank, established in 1968, is majority-held by CoopHoldings Co-operative Society Limited. As of March 2021, the bank had total assets of KES 513 billion (USD 4.6 billion).
EIB, founded in 1958, is “focused on innovation, SMEs [small and medium-sized enterprises], infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution assists its clients “in project implementation and the modernisation of public policies [via] technical and financial expertise and advisory services.” As of December 2020, its total assets amounted to EUR 554 billion (USD 675 billion) with disbursements during the preceding year totaling EUR 58.3 billion (USD 71 billion).
By Adhya Singh, Research Associate
Sources and Additional Resources
EIB press release
https://www.eib.org/en/press/all/2021-422-eur-50-million-backing-for-kenyan-companies-impacted-by-covid-launched-by-eib-and-the-cooperative-bank-of-kenya
Co-operative Bank of Kenya homepage
https://www.co-opbank.co.ke/
Co-operative Bank of Kenya financial statement, 2021 Quarter 1
https://web.co-opbank.co.ke/uploads/Q1_2021_FINANCIALS_28a853ed25.pdf
EIB homepage
https://www.eib.org
EIB 2020 financial report
https://www.eib.org/en/publications/financial-report-2020
Previous MicroCapital article on EIB
https://www.microcapital.org/microcapital-brief-terabank-georgia-borrowing-7m-from-eib-to-aid-msmes-in-adjusting-to-covid-19-pandemic/
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