NAIROBI, Kenya, Aug 9 – Kenya Commercial Bank (KCB) and the International Finance Corporation (IFC) have signed a credit facility deal worth Sh9.5 billion to help the bank increase its lending support to Small and Medium Enterprises (SME’s).
KCB’s Chief Executive Officer Martin Oduor-Otieno said the credit line will enable the bank to expand its mortgage portfolio in the region and will allow for further extensions for credit in the long-term.
“The loan facility of Sh9.5 billion we have received from the IFC is repayable over seven years. What this does is it then guarantees we can lend money for seven years; this is a longer period than what most banks lend out for which is usually between three to four years,” Mr Oduor-Otieno stated.
IFC’s Director for East and Southern Africa, Jean Philippe Prosper added the credit facility will help benefit the economy by boosting the amount of SMEs in the country.
“If you want to grow your business, you can go and borrow from a bank. This line of credit facility to KCB allows for more SME’s to borrow from the bank and thus help boost the economic outlook of the country,” Mr Prosper said.
Mr Oduor-Otieno stated the housing market will soon be booming as most Kenyans have not yet realised the long term benefits of the country economic blue print, Vision 2030.
He affirmed Kenyans will soon start taking more loans to build or buy their own houses once they realized 2030 is approaching and infrastructure is being set up by the government.
“Currently, the bank (KCB) has roughly 30 percent of the market share for homeowners and this will only increase once Kenyans realise they can own homes for much less than what they are paying in rental fees to try live nearer their places of work. This has been achieved with the likes of the newly opened Museum Hill interchange,” he affirmed.
The credit line facility will be accessible to all branches within the KCB network which include; Tanzania, Uganda, Rwanda and Southern Sudan.