Ghana International Bank lends $30m to Kenyan bank

The Ghana International Bank (GHIB) has provided a $30 million loan to the Kenya Commercial Bank (KCB), the Kenyan Standard reported December 11, 2013.

The loan is reported to a three-year facility.

The Chief Executive of KCB Joshua Oigara who confirmed the deal said the bank will use the facility to increase its lending support through foreign currency reserves to small and medium-sized enterprises (SMEs), micro enterprises and the mortgage market.

According to Mr Oigara, KCB would also use the loan facility to increase its lending portfolio in Kenya and through its subsidiaries in Tanzania, South Sudan, Uganda, Rwanda and Burundi.

CEO of GHIB, Mr Joe Mensah, according to the Standard report, said the financial institution decided to join hands with KCB because foreign currency lending is becoming relevant in Africa.

“It is becoming important in supporting international trade and other foreign currency dealings whose demand is growing,” he added.

Mr Mensah hinted that GHIB is preparing to set up an office in Nairobi.

KCB in 2011 secured a $105 million credit facility from the International Finance Corporation to expand SME and micro enterprises.

By Ekow Quandzie