The International Finance Corporation (IFC) has extended KSh500 million ($50 million) to Diamond Trust Bank Kenya Limited (DTB) for working capital and trade-related lending to its small and medium-sized enterprise (SME) clients.
The funds are being provided under IFC’s global $8 billion fast-track COVID-19 facility, launched in March to protect jobs and support businesses with working and trade-related capital as economies grapple with the challenges of the pandemic.
“As an SME bank, we are aware that these businesses are among the hardest hit by the fall-out of the pandemic. 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,” Nasim Devji, Group CEO and Managing Director DTB.
“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,” Ms Devji added.
Manuel Moses, IFC Country Manager for Kenya, said, “IFC’s partnership with DTB Kenya is part of our strategy to help businesses in Kenya manage the impacts of COVID-19 so they can continue providing essential goods and services and maintain jobs. IFC is committed to help countries across Africa meet the unique challenges of COVID-19 and also speed the process of recovery.”
IFC has earmarked $2 billion of its $8 billion COVID-19 facilitY to the IFC Working Capital Solutions Program to provide funding to emerging-market banks so they can help businesses shore up their working capital needs.