I&M Bank gets Sh4 billion for SME lending

Kihara Maina MD I&M Bank of Kenya.

The European Investment Bank has given a Sh4.1 billion ($40 million) to I&M Bank to lend to Kenyan startups.

According to European bank's executive director in charge of business financing outside Europe, Robert Schofield, I&M Bank will advance the loans to startups that can afford to finance 50 per cent of the projects they are undertaking.

“Eligible borrowers for this credit line will get a maximum of 50 per cent of the total cost of the project they are undertaking,” said Mr Schofield at the deal’s signing in Nairobi yesterday.

I&M Chief Executive Kihara Maina (above) said the money would complement the bank’s ongoing lending activities for its corporate, institutional, and business banking segments.

“I&M Bank anchors its business model on being a partner of growth for all our key stakeholders. We believe that the funding line from the European Investment Bank will help our SME, corporate, and institutional customers accelerate their business growth and support their expansion efforts,” said Mr Kihara.

The European Union (EU) ambassador to Keny, Stefano Dejak, said Kenya had a strong and vibrant private sector that was a key driving force of economic growth and employment.

“The EU gives great importance to dialogue and engagement with this sector,” he said.