I&M Bank Group, a leading financial services conglomerate founded by Kenyan businessman Suresh Bhagwanji, has received a $15-million NASIRA portfolio guarantee from FMO, the Dutch entrepreneurial development bank, through its banking subsidiary, I&M Bank Kenya.
NASIRA is a novel financial program that assists young, female, migrant, and COVID-19-affected entrepreneurs in Sub-Saharan Africa and neighboring European countries.
The risk-sharing facility, which will be used to expand I&M Bank’s MSME portfolio, will play an important role in reducing inequality by providing financing to Kenyan MSMEs led by female and young entrepreneurs, who account for more than one-third of Kenya’s GDP.
Huib-Jan de Ruijter, chief investment officer at FMO, said the Dutch development bank is pleased to extend support to I&M Bank Kenya through a NASIRA portfolio guarantee in line with its plans to reduce inequality by supporting financing to promising female and young entrepreneurs.
“This latest guarantee is perfectly aligned with our strategy and contributes to SDGs 8 and 10 for decent work and economic growth, as well as reducing inequalities,” he said. “We look forward to extending our mandate through NASIRA with the opening of the EFSD+ this year.”
Kihara Maina, CEO of I&M Bank, said the FMO guarantee, which aligns with the bank’s commitment to empower prosperity for all stakeholders, will help its MSME clients accelerate their business growth and support their expansion efforts, while also providing assistance to those clients negatively impacted by COVID-19.
Founded by Bhagwanji nearly 47 years ago, I&M Group is the Kenya-based non-operating holding company of I&M Bank Limited, a leading financial services group with active operations in Kenya, Tanzania, and Rwanda, as well as a joint venture in Mauritius.
The group’s profit increased by 44 percent in the first quarter of 2021, from Ksh1.9 billion ($16.3 million) the previous year to Ksh2.71 billion ($23.2 million), demonstrating the bank’s business model’s resilience in the face of a slew of economic challenges.
