Co-operative Bank Group (Co-op Bank), led by Kenyan banking magnate Gideon Muriuki, is set to enhance its assistance to micro, small, and medium-sized enterprises (MSMEs) in Kenya through improved access to loans.
The group has secured a long-term loan of $100 million from a consortium led by DEG, a Germany-based development finance institution and a subsidiary of KfW Group.
The seven-year tier II facility was made possible with the backing of various entities, including the Africa Agriculture & Trade Investment Fund, Micro Small Medium Enterprises Bonds, and European development finance institutions such as Finnfund, Norfund, and the co-financing facility European Financing Partners.
Muriuki, the managing director of Co-op Bank, expressed the timeliness of the funding, stating: “The funding by DEG and the consortium is most timely in view of the great need to better support our business customers.”
He emphasized that this facility will empower the bank to provide better-structured solutions to fulfill the financing requirements of MSMEs.
Co-op Bank is one of the largest financial institutions in East Africa. Its subsidiaries include Kingdom Securities Limited, Co-optrust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and Co-operative Bank of South Sudan.
The leading financial services group has implemented the cooperative model to revolutionize the banking experience in East Africa, leveraging innovative financial solutions to drive social and economic transformation across a broad range of operations.
Muriuki, a prominent investor in Kenya, holds a significant stake of two percent in Co-op Bank. This amounts to 117,471,300 ordinary shares in the Nairobi-based lender, solidifying his position as a key figure in the country’s financial landscape.
The bank’s robust performance during the first quarter of 2023 further reinforces its commitment to sustainable growth. Co-op Bank’s profits soared to Ksh6.11 billion ($44.4 million), up from Ksh5.83 billion ($42.4 million) during the same period last year.
The notable increase was primarily attributed to a surge in interest and non-interest income. The injection of the $100-million long-term loan will undoubtedly bolster Co-op Bank’s efforts to support the development and expansion of MSMEs in Kenya, contributing to the country’s overall economic prosperity.
