IFC extended a loan of $15,000,000 to Guaranty Trust Bank — GTBank Kenya – Ltd., a Guaranty Trust Group subsidiary, to finance local businesses.
GTBank Kenya will use the funds to help Kenyan businesses get more financing, especially for those whose cash flows have been disrupted due to the COVID-19 pandemic.
These funds will be available to small and medium-sized businesses (SMEs) in trade, pharmaceuticals, and manufacturing sectors. They will help them create and retain jobs and improve their operations.
This loan is part the IFC Fast Track COVID-19 Facility, which was launched in 2020 at $8 billion. This facility will support existing IFC clients in emerging market economies that have been affected by COVID-19’s economic fallout.
The IFC loan will allow the Bank to meet the trade-related and working capital needs of businesses, particularly SMEs that are part our core clientele. These businesses were negatively affected by the pandemic, and they are now recovering and revitalizing as the economy opens up. Therefore, the Bank needs to support them through credit access,” Olabayo Veracruz is managing director of GTBank Kenya.
“IFC is committed in supporting Kenya’s private sectors, including strengthening the financial sector to allow smaller companies to access financing. GTBank Kenya’s partnership will provide funds to businesses to help them emerge from the COVID-19 crisis,”, said Amena Arif (IFC country manager for Kenya).
Pandemic-related disruptions in Kenya caused Kenya’s real GDP decline in 2020. Smaller businesses were particularly hard hit by disruptions in supply chains and lower economic activity. While Kenya has returned to its pre-pandemic levels of growth in 2021, the future is still uncertain and small businesses need additional support.
IFC is committed supporting Kenya’s long-term growth. As of June 30, 2021 the IFC’s investment portfolio in Kenya was $940.1 million, with the majority of investments being in the finance, manufacturing and services sectors.