Co-operative Bank #ticker:COOP has received Sh6.3 billion (50 million euros) from the European Investment Bank for onward lending to small businesses to help them recover from the impact of the Covid-19 pandemic.
Co-op Bank chief executive officer Gideon Muriuki said micro, small and medium-sized (MSME) firms with up to 250 workers can apply for the loan.
The long-term loan will be repayable in seven years and will assist MSMEs fund the acquisition of tangible business assets, working capital, development of distribution networks innovation and business research.
Mr Muriuki said the lending is part of the bank’s effort to contribute to the recovery of Kenya’s businesses following the Covid-19 challenges.
“The credit facility will be available for up to a maximum of Sh1.5 billion per customer for a maximum tenor of seven years,” he said.
“Co-operative Bank commitment to the SME sector in Kenya will ensure that this facility will be available immediately,” Mr Muriuki added.
The European Investment Bank, the lending arm of the European Union, has partnered with the lender in finance investments since 2003.