Funding: Stanchart gives Sh5 billion to virus fund

Standard Chartered group will donate Sh5 billion ($50 million) global fund to boost the fight against Covid-19.

This is as efforts to mitigate the effects of the coronavirus gains speed, with financial institutions going all-out to shelter their customers from the economic meltdown.

“The group will immediately donate Sh2.5 billion ($25 million) to support emergency relief in our most affected markets. The additional $25 million will help communities over the medium term to recover from the economic impact of the virus,” said the lender in a statement yesterday.

"It will also match contributions made by its employees and other donors to meet the $50 million target. All the group’s board and management team members will be making personal contributions to the fund."

StanChart's contribution comes at a time when businesses are facing operational challenges, some having shut down as others lay off workers. Sectors such as tourism and hospitality have also been dealt a blow as small and medium enterprises teeter on the brink of collapse.

This has seen Kenya take a raft of measures to salvage the economy including a freeze on development projects to use the cash to fight coronavirus.

The Central Bank had previously offered Sh7.4 billion to fight the menace. StandChart also announced the launching of initiatives aimed at cushioning its employees, who stand at 84,000, as well as its customers and clients globally.

Earlier this week, the lender said that it was committing up to Sh100 billion ($1 billion) of loans, import and export financing and working capital for companies providing goods and services.

This is aimed at helping in the fight against COVID-19 and supporting those re-deploying production resources to fight the pandemic.

“Companies in scope include manufacturers and distributors in the pharmaceutical industry and healthcare providers, as well as non-medical companies that have volunteered to add this capability to their manufacturing output. Goods in scope include ventilators, face masks, protective equipment and sanitisers,” it said.