Credit union #ticker: COOP has received $ 6.3 billion from the European Investment Bank to on-route loans to small businesses to help them recover from the effects of the Covid-19 pandemic .
Gideon Muriuki, Chief Executive Officer of Co-op Bank, said micro, small and medium-sized enterprises (MSMEs) with up to 250 employees can apply for the loan.
The long-term loan is repayable in seven years and will assist MSMEs in funding property, plant and equipment purchases, working capital, distribution network innovation development and business research.
Mr Muruiki said the lending was part of the bank’s efforts to help recover Kenyan businesses from the challenges posed by Covid-19.
“The credit facility will be available for up to a maximum of Sh1.5 billion per customer for a maximum term of seven years,” he said.
“The credit union’s commitment to the SME sector in Kenya will ensure this facility is readily available,” added Mr. Muriuki.
The European Investment Bank, the lending arm of the European Union, has been working with the lender to finance investments since 2003.