DTB receives Sh5.4billion Covid-19 SME support from IFC

Diamond Trust Bank Kenya has signed an agreement for a $50million (Sh5.4billion) loan with IFC, a member of the World Bank Group.

This facility will support its borrowers who have been affected by the Covid-19 pandemic, especially small and medium enterprises.

The funds are being provided under IFC’s global Covid-19 facility, launched in March to protect jobs and support businesses with working and trade-related capital as economies grapple with the challenges of the pandemic.

“We are aware that small businesses are among the hardest hit by the pandemic therefore this facility will enable us to support SMEs to address their cash flow challenges,” said Nasim Devji, Group CEO DTB.

In April, the Central Bank of Kenya reported that SMEs had been hit harder than larger companies by Covid-19 in part due to their challenges accessing capital.

The World Bank Kenya Economic Update projects that Kenya’s gross domestic product will fall this year due to the negative impacts of Covid-19, underscoring the need to support the country’s smaller businesses.

“We urge our SME borrowers to take advantage of the facility to ensure their survival during these tough times, as we remain committed to their development,” Devji added.

Manuel Moses, IFC Country Manager for Kenya, said, “This partnership with DTB Kenya is part of our strategy to help businesses in Kenya manage the impacts of Covid-19so they can continue providing essential goods and services and maintain jobs.”

IFC has earmarked $2billion (Sh216 bi8llion) of its $8billion (Sh864 billion) facility to the Working Capital Solutions Program to provide funding to emerging-market banks so they can help businesses shore up their working capital needs.

The IFC  facility will support existing clients in the infrastructure, financial, manufacturing, agriculture, health, and other sectors vulnerable to the pandemic.