Browsing: African Guarantee Fund(AGF)

NIC Bank Kenya has signed a Loan Portfolio Guarantee agreement amounting to Ksh 515,900,000 (USD5.1 million) with the African Guarantee Fund for Small and Medium-sized Enterprises (SMEs). The partnership aims to unlock financing intended to facilitate the promotion, growth and development of SMEs in Kenya. This comes in the wake of a continued credit crunch in the market, occasioned by the interest rate cap law in the country.

NIC Bank Kenya has signed a Loan Portfolio Guarantee agreement amounting to Ksh 515,900,000  (USD5.1 million) with the African Guarantee Fund for Small and Medium-sized Enterprises (SMEs).

The partnership aims to unlock financing intended to facilitate the promotion, growth and development of SMEs in Kenya.

This comes in the wake of a continued credit crunch in the market, occasioned by the interest rate cap law in the country.

Since the law came into place in 2016, banks have been lending more to the government, shunning the private sector and individuals whom they term ‘high risk borrowers’.

READ:Why high risk borrowers , SMEs in Kenya could get easy loans

Speaking during the partnership launch, AGF Group Deputy CEO Jules Ngankam noted that the objective is to provide partial credit guarantees and capacity development to NIC Bank to stimulate financing of SMEs, thereby unlocking their potential to deliver exclusive growth in …