The Commercial Bank of Africa (CBA), Kenya has received a $90 million financial package from the African Development Bank (AfDB).
CBA is the largest privately-owned bank in Kenya, the sixth largest of the country’s 43 banks. The Tier 1 bank as ranked by the Central Bank of Kenya also has operations in Tanzania and Uganda.
It offers conventional as well as digital banking products and services to corporates, institutions, small and medium-sized enterprises (SMEs) and the quality end of the personal banking market.
The AfDB financing comprises a $50 million Line of Credit to fund SMEs and local corporates by providing liquidity support to expand financing to businesses involved in value-addition in the trading, manufacturing, agriculture, transport, construction and other sectors; thereby enhancing job creation and facilitating financial access to business.
A further $40 million in Trade Finance Line of Credit will go towards reducing Africa’s trade financing gap by promoting private sector development and broad-based economic growth.
It will also support the bank’s endeavours to complement the efforts of various partners including the Government of Kenya’s Long Term Development Strategic Agenda and Vision 2030 which seek to revitalize the country’s economy by developing infrastructure and improving access to affordable credit by SMES which support Kenya’s economic transformation making it more resilient and diversified.
The transaction is aligned with one of AfDB’s strategic priorities to improve the quality of life for African people which it will by enhancing access to financial services and expanding access to social and economic infrastructure; and increasing enterprise development and competitiveness by expanding the economic base.