KCB, USAid ink Sh1.8b loan deal

By James Anyanzwa

KCB Group has signed a Sh1.8 billion loan agreement with the United States Agency for International Development to cushion credit targeting agriculture and water projects.

The guarantees are intended to strengthen KCB risk appetite and ability to finance loans to borrowers engaged in the agricultural value chains sector for six years.

“These credit guarantees will cover production, aggregation, storage, processing, handling, transportation, water and sanitation projects,” said Annastacia Kimutai, KCB director for retail banking.   

The loan guarantee is part of three Development Credit Authority partial loan guarantee agreements that leverage Sh2.8 billion ($33.5 million) to targeted agriculture, clean energy, and water.

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Select areas

Kimutai said the bank wanted to establish the market entry approach through shared risk to select broad areas namely agri-value chains, water and sanitation project financing for SMEs.

“The qualifying projects include investments along the dairy, drought-resistant crops such as millet, sorghum, horticulture, and maize value chains,” she said.