Bank of Africa – Kenya signs sh2 Billion Loan Deal with Dutch Bank

By Standard Digital Reporter

NAIROBI, KENYA: Bank of Africa - Kenya today signed a Sh2 billion loan agreement with Dutch Development Bank, FMO.

The landmark deal which will be disbursed in two tranches over a 12 month period seeks to support Bank of Africa’s foray into the retail market segment.

Speaking during the signing ceremony in Nairobi, Bank of Africa - Kenya Chairman, Ambassador Dennis Awori said that the loan comes at an opportune time when the bank is actively introducing new products for the retail market, with five retail products being launched recently.

“The banking industry in Kenya is experiencing interesting times when financial access is on the increase through the many banking institutions. Bank of Africa Kenya will utilize the loan to finance medium and long term loans for eligible customers,” Ambassador Awori added.

FMO, the Dutch Development Finance Company based in Netherlands is an institutional partner at Bank of Africa-Kenya, holding a 20 per cent share in the bank.

“At FMO, we have a strong belief in the power of entrepreneurship in economic development and therefore support sustainable private sector growth in emerging markets. The loan will be payable in seven years from the date of signing the facility agreement,” said Mr.  Jorim Schraven, the FMO Manager- Financial Institutions for Africa.

Mr. Schraven added that FMO is confident in the bank’s ability to steer business in the right direction where good corporate governance increases investor confidence which is important in an increasingly integrated world”.

Mr. Kwame Ahadzi, the Bank’s Managing Director said, “BOA-K is continuously improving its services to meet customer needs, while following market trends very closely. We have expanded our branch network to 27 branches in Kenya with a strategic plan to add five branches this year. This will help us serve our growing portfolio of customers better, as we work towards meeting the Vision 2030 goal to create a globally competitive and prosperous. We are very optimistic about Kenya’s economic and social development.

The loan facility offers BOA Kenya long-term capital that will lead to a broader lending platform.