Nairobi — The World Bank has extended a $60 million loan towards boosting Kenya's fledgling Small and Medium-sized Enterprises (SMEs) sector.
Through its private sector lending arm, the International Finance Corporation (IFC), he loan will be channeled through Kenya's Co-operative Bank Group and will be repaid over a period of seven years on a denominated dollar basis.
The loan will come as a major reprieve to the credit hungry Kenya SME sector and will to a large extend subside the expensive credit lines currently existing in Kenya.
The loan will particularly target SMEs in the agricultural sector with a view of boosting production at a time when major cash crops like coffee, tea and sugar cane are facing dwindling yields.
Cooperative Bank Group Managing Director Gideon Muriuki said the funds will mainly target agricultural producers exporting SMEs who have a record of capacity for repayment of the loan.