Thursday , 21 September 2017

Home » Corporate » KCB RECEIVES 9.6 BILLION TO EXPAND ITS MORTGAGE PORTFOLIO

KCB RECEIVES 9.6 BILLION TO EXPAND ITS MORTGAGE PORTFOLIO

KCB targets to increase its Small and Medium Enterprises (SME’s) customer base by 50,000 after receiving a loan of 9.6 billion shillings from the International Finance Corporation (IFC) to expand its mortgage portfolio.

According to the bank’s Chief Executive Officer, Dr. Martin Oduor the financial support will enhance the growth of SME’s lending portfolio in it’s subsidiaries that are still under served and are characterised by underdevelopment.

“The loan will boost the bank’s SME’s lending portfolio in its Tanzania, Rwanda, South Sudan and Ugandan subsidiaries. 5 million dollars will help manage risk in Rwanda by eliminating foreign currency exposure. We will continue to extend credits to SME’s and Mortgages through our branch networks,” said Oduor.

He added: “Today we have in excess of 18 billion in deposites from the SME’s sector, this together with the 12 billion capital raised in the successful rights issue last year, puts KCB in a good position to lend favorably to the sector.” added Oduor.

KCB had started a campaign dubbed ‘Unlocking your potential’ that aims at achieving a lending portfolio of 10 billion shillings to the SME’s sector an up of 3.7 billion in 2010, this is in addition to increase the banks SME’s deposit book to 30 billion through the introduction of innovative products and services.

IFC director for East and Southern Africa Jean Philippe Prosper, said that despite the greater obstacle facing SME’s , they are powerful engines for growth in African economies adding that through the partnership enterprneurs will have an easy access to finance.

“IFC partnership with KCB will facilitate access to finance to help build businesses and also support the bank’s housing finance activities, with a greater multiplier effect on the job creations and SME’s,” said Jean.

Oduor also said the additional resources will accelerate property development and improve the level of housing for its customers both locally and internationally.

The signing of the credit facility is the second one by the two institutions after they signed a global Trade Finance programme amounting to 25 million US dollar three years ago for pre-exports and trade finance guarantees.

The renewed SME proposition comes less than five months after the launch of KCB Biashara club, SME programme in Rwanda which aims at creating a platform for customers to network and cross sell .

Members will be hosted to more than 60 entrepreneurship, management and financial skill workshops in Nairobi, Coast, Western, Rift valley and Central regions through the .

With agriculture being the backbone of the country’s economy, the SME’s sector targets specialized agricultural financing package geared towards adding value in the dairy, maize and tea sub-sectors.

KCB RECEIVES 9.6 BILLION TO EXPAND ITS MORTGAGE PORTFOLIO Reviewed by on . KCB targets to increase its Small and Medium Enterprises (SME's) customer base by 50,000 after receiving a loan of 9.6 billion shillings from the International KCB targets to increase its Small and Medium Enterprises (SME's) customer base by 50,000 after receiving a loan of 9.6 billion shillings from the International Rating:
scroll to top