Diamond Trust Bank (DTB) Kenya has signed an agreement to receive a Sh5.4 billion loan from International Financial Corporation (IFC) to finance SMEs on the back of the protracted pandemic.
IFC is a member of the World Bank. The loan facility is aimed at supporting small and medium enterprises largely affected by the pandemic, media reports said.
DTB Group chief executive Nasim Devji said in a statement, “This facility will enable us to support SMEs to address their cash flow challenges, which is a key concern as businesses need easy access to short-term liquidity. We urge our SME borrowers to take advantage of the facility to ensure their survival during these tough times, as we remain committed to their development.”
The Central Bank of Kenya stated that small and medium enterprises in the country have been most affected by the pandemic compared to established enterprises. According to the World Bank, Kenya’s economy is anticipated to fall this year owing to the negative impact of Covid-19. It also reinstated that small and medium enterprises need additional financing to cope with the current situation.
“We are aware that small businesses are among the hardest hit by the pandemic therefore this facility will enable us to support SMEs to address their cash flow challenges,” Devji said.