Kenya Commercial Bank (KCB) has received approval from the African Development Bank (AfDB) for a Sh10 billion line of credit.
According to reports, the AfDB Board of Directors approved the Sh10 billion which is set to go towards lending to small businesses and youth.
The move comes as KCB looks to grow its loan book following the cut down on law capping interest rates.
“The funding is aimed at supporting KCB’s lending operations in Kenya especially to corporate businesses, Small and Medium Enterprises (SMEs) as well as projects that are critical to the development of Kenya’s economy,” said AFDB in a statement.
AfDB maintained that the credit line will go towards creating jobs and improving financial access to businesses.
“Proceeds of the LOC will provide much-needed liquidity support to, among other sectors, infrastructure, energy and value-addition through manufacturing and important population segments like the youth,” said AFDB in a statement.
With commercial banks currently charging customers 14 per cent and as the law capping rates continue to affect several local banks across the country it is still uncertain as to whether or not those interested in acquiring loans will be given at a lower rate.