Equity Bank (Kenya) Limited, a member of the Equity Bank Group, recently secured EUR 100 million (USD 120 million) from the EU’s European Investment Bank (EIB) for on-lending to small and medium-sized enterprises (SMEs). The EU Ambassador to Kenya, Simon Mordue, said, “The EU and EIB support to small and medium enterprises will directly support Kenyan entrepreneurs and farmers who need this financing to cushion them from the effects of COVID-19.”
The loan is paired with EUR 20 million (USD 24 million) in grant funds from the EU to support “longer-term agricultural value chains investment projects and further develop [the] provision of long-term financing for agriculture.”
Equity Bank Kenya was founded in 1984 and is based in Nairobi. The institution has 177 offices and provides fund-transfer, savings, lending, insurance and investment services. As of September 2020, it reported total assets of KES 598 billion (USD 5 billion), customer loans of KES 302 billion (USD 2.8 billion) and total deposits of KES 22 billion (USD 206 million).
Equity Bank Group is active in the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. As of December 2019, it reported USD 6.1 billion in total assets, customer deposits of USD 4.4 billion, and a gross loan portfolio of USD 3.3 billion.
EIB, founded in 1958, is “focused on innovation, SMEs, infrastructure, and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution “adds value in project implementation and the modernization of public policies thanks to its technical and financial expertise and advisory services.” EIB reported total assets of EUR 555 billion (USD 621 billion) and a loan portfolio of EUR 448 billion (USD 502 billion) as of December 2019.
By Aakansha Shenoy, Research Associate
Sources and Additional Resources
EIB press release
https://www.eib.org/en/press/all/2021-078-team-europe-partners-with-equity-bank-to-support-kenyan-business-and-agriculture-amid-covid-19
Equity Bank Group homepage
https://equitygroupholdings.com/
Equity Bank Group financial statements, September 2020
https://equitygroupholdings.com/investor-relations/
EIB homepage
https://www.eib.org
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