Diamond Trust Bank (DTB) has bagged a $50 million equivalent to Ksh.5.41 Billion loan deal from World Bank’s private sector arm International Finance Corporation’s (IFC) for onward lending to Small and Medium sized Enterprises (SMEs). The move has positioned the institution as Kenya’s second top-tier lender after Equity PLC.
The loan is in line with the IFCs’ vision to enable access of loans and credit to small traders and companies. SMEs are considered risky lenders by financial firms due to their inadequate collateral for loans.
“IFC’s partnership with DTB Kenya is part of our strategy to help businesses in Kenya manage the impacts of COVID-19 so they can continue providing essential goods and services and maintain jobs,” asserted IFC’s Chief of Kenya, Manuel Moses.
However, economic woes courtesy of COVID-19 has redefined ease of doing business for SMEs, with little spending on the part of consumers and a downward spiral in the economy. This has further weakened their ability to save and tap loans.
“This facility will enable us to support SMEs to address their cash flow challenges, which is a key concern as businesses need easy access to short-term liquidity,” reads a statement by DTB Group Chief Executive Nasim Devji.
The DTB bank will continue to give credit to small companies and traders through The IFC loan.