This archive report was first published on 29 June 2020.
On June 26, 2020, the International Finance Corporation (IFC) approved a loan of KSh 5 billion to Equity Bank to support the bank's lending operations to micro, small and medium enterprises (MSMEs) in Kenya.
According to the IFC, the loan will help expand Equity Bank's lending operations to MSMEs, especially those whose cash flows have been disrupted by the COVID-19 pandemic.
IFC hopes that the loan will promote the resilience and stability of trade finance markets by enabling private sector players like MSMEs to access necessary finances to support their operations during the pandemic and fuel economic recovery.
The loan will benefit small businesses with an employee base of between 10 and 300 and with total assets below KSh 1.5 billion. The loan limits for micro-businesses are KSh 1 million, KSh 10 million for small businesses, and KSh 100 million for enterprises.
Interventions to curb the COVID-19 spread have taken a toll on the country's SMEs, with a survey by the Kenya Private Sector Alliance (KEPSA) revealing that close to 45% of SMEs and MSMEs had to close operations by May to limit the impact of the pandemic.
