The Co-operative Bank of Kenya recently secured a substantial $25 million (Sh3.3 billion) loan from Germany’s development bank DEG to enhance financing access for women-led small and medium-sized enterprises (SMEs) in Kenya.
This facility seeks to bridge the existing financial gaps faced by these businesses, with Co-op Bank’s Managing Director Gideon Muriuki emphasizing the crucial support it offers to women entrepreneurs. Part of this funding benefits from a guarantee by the European Fund for Sustainable Development Plus (EFSD+), which was established to bolster private sector partnerships as part of the EU’s Global Gateway Initiative.
This latest funding reflects ongoing cooperation between Co-op Bank and DEG, marking a significant addition to their previous engagements, including a $100 million tier II capital facility granted last year.
According to Monika Beck, a member of DEG’s management board, the EU guarantee is pivotal in enabling such investments with profound local impact, particularly through job creation and income generation.
The timing of this facility is especially significant as Co-op Bank’s overall loan book recently increased to Sh373.7 billion, with a strong commitment to SMEs and micro-enterprises.
Last year, the bank’s loans to these sectors reached Sh25.22 billion, highlighting its continued focus on fueling growth in Kenya’s SME sector.
Through this recent funding, Co-op Bank aims to deepen its support for women entrepreneurs, fostering economic growth and inclusivity in Kenya’s business landscape.
