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Supporting Kenyan MSMEs with Equity Bank
Project
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Signature date
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Location
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Kenya
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Financing tool
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Financing amount (Euro)
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19500000
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Financing details
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KES 2,511,360,930 guarantee
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Customer
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EQUITY BANK KENYA
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Type of customer
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Financial institution
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Project number
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CKE1183
This information is given at the time of signature, without prejudice to any developments in the operation/project.
By supporting a key player in the country and region, Proparco is contributing to supporting high-impact and job-creating MSMEs.
Client presentation
Equity Group is the largest bank in the region in terms of assets, with a strong focus on supporting businesses in the real economy. It stands out for its continued support to SMEs, women entrepreneurs and rural people with products designed to support wealth creation. It is also well-known for its high-impact development programs led by the Equity Group Foundation in the fields of education and leadership development, energy and the environment, food and agriculture, health, financial inclusion and business development, and social protection.
Project description
Proparco has signed a partnership with Equity Bank Kenya, on behalf of Agence Française de Développement, under the ARIZ program, which is implemented through the resources of AFD Group. The ARIZ guarantee covers 50% of the amount of eligible loans allocated to Kenyan MSMEs by Equity Bank.
The objective is to increase the allocation of medium and long-term financing to small and medium-sized enterprises operating in Kenya, for a total amount of KES 2,511,360,930 (EUR 19.5m).
Project impact
AFD Group’s ARIZ risk-sharing program was launched in 2008 and aims to reduce the financing gaps faced by small and medium-sized enterprises, in particular due to the lack of collateral guarantees or difficulties in preparing financial statements.