Equity bank Kenya has secured a $50 million (Ksh 5.48 billion) loan guarantee from Dutch Development Bank FMO, for onward lending to micro-, small and medium-sized enterprises (MSMEs).
This is the second NASIRA guarantee with the support of EU funding.
Linda Broekhuizen, CEO of FMO said, “We are very happy to be able to support Equity Bank Kenya in weathering the COVID-19 storm. Funding for MSMEs is essential in lessening the impact of the pandemic on people’s livelihood and their communities. Together with the Capacity Development project we are confident small entrepreneurs will get much needed support.’’
The NASIRA loan will support MSMEs affected by the COVID-19 crisis, including female and young entrepreneurs and companies in the agriculture value chain.
EU Ambassador to Kenya Simon Mordue says the financial program will enable small business owners to access affordable loans through banks and non-banking institutions.
“The NASIRA guarantee is part of the EU External Investment Plan. By investing €4.6 billion in EU funds, an additional €47 billion in total investment will be leveraged globally from the public and private sector. It will enable small business owners to access affordable loans through local banks, microfinance institutions and other non-banking financial institutions,” he said.
- Equity Bank Secures KSh10.8 Billion Loan for SMEs
- Equity Bank, Navigating Tough Tech Terrain, Innovating for Customers
Nasira is a financial program that allows local banks in Sub-Saharan Africa and countries neighbouring Europe lend to groups viewed as too risky, has expanded its capacity to reach small businesses in the region, following a EUR 25 million (Ksh 3.34 billion) boost from the European Fund for Sustainable Development, and another EUR 7.5 million (KSh 1b) from the Dutch Government.