NAIROBI, Kenya, Nov 26 – Co-operative Bank of Kenya has secured Sh 6.3 billion credit facility from the European Investment Bank (EIB)which will enable the bank to offer loans to Small and Micro Enterprises that were severely affected by the coronavirus pandemic.
The funds are part of 400 million euros issued by EIB in a bid to strengthen investment in fragile regions across East Africa and construct affordable and energy-efficient housing.
Cooperative Bank CEO Gideon Muriuki said the new funds will benefit companies with up to 250 staff who can be able to borrow as much as Sh 1.5 billion over seven years.
The funds, Kariuki, said will also provide working capital, development and distribution networks innovation, and business research among others, and contribute to the recovery of businesses in Kenya.
“Through this money, we will be able to reach 15 million Kenyans, Businesses employing up to a maximum of 250 employees can apply immediately,” he said.
The financial deal was made during EIB’s President Werner Hoyer visit to Africa when he also officiated the official opening of the first regional office in Nairobi.
“At the European Investment Bank we are committed to enhancing the impact of our sustainable investment around the world in close cooperation with our global partners and through an increased local presence of our technical, environmental, and financing experts
The new branch, EIB noted, is aimed at boosting its response to private and public investment priorities and building on best-practice engagement with project partners.
“ It is a pleasure to be in Nairobi for the first high-level EIB visit to Africa since the pandemic and join political, business, banking, and civil society stakeholders for today’s formal launch.“ Thomas Östros, European Investment Bank Vice President added.
The European Union Ambassador to Kenya noted: “We are honored that the EIB has chosen Nairobi as the location for its regional hub. This is a testament to the growing importance of Nairobi as a gateway to the East Africa region, and Kenya as a strategic partner to the European Union, through which we are engaged in different spheres, including trade and investment.”
