The Co-operative Bank of Kenya has secured a $25 million (Sh3.3 billion) loan from Germany’s development bank, DEG, aimed at improving financing access for women-led small and medium-sized enterprises (SMEs) in Kenya. This initiative addresses the financial challenges faced by these businesses, with Co-op Bank Managing Director Gideon Muriuki highlighting its importance in empowering women entrepreneurs.
The funding is partially guaranteed by the European Fund for Sustainable Development Plus (EFSD+), an EU program designed to strengthen private sector partnerships under the Global Gateway Initiative.
This collaboration builds on the longstanding relationship between Co-op Bank and DEG, including a $100 million tier II capital facility extended last year. Monika Beck, a member of DEG’s management board, noted that the EU guarantee plays a crucial role in enabling impactful investments that drive job creation and income generation locally.
The loan comes as Co-op Bank’s total loan portfolio has grown to Sh373.7 billion, with a significant portion dedicated to SMEs and micro-enterprises. Last year alone, the bank lent Sh25.22 billion to these sectors, reaffirming its commitment to driving growth in Kenya’s SME ecosystem.
By leveraging this latest funding, Co-op Bank seeks to enhance its support for women entrepreneurs, promoting inclusive economic development across the country.
