IFC has launched its first Catalytic First Loss Guarantee programme in Africa, with Kenya among the first beneficiaries. The initiative, introduced by the International Finance Corporation, has helped unlock $144.4 million in financing for Kenyan small and medium-sized enterprises (MSMEs) through partnerships with 4G Capital, Equity Bank and KCB. This marks a significant step in supporting local businesses and boosting economic growth in Kenya.
The programme aims to reduce the risks associated with financing for MSMEs, which often struggle to access capital. By guaranteeing a portion of the loan, IFC encourages banks to lend more confidently to small businesses. This support is expected to create jobs and drive innovation across various sectors in Kenya.
The move comes as Kenya continues to expand its digital economy, with recent agreements positioning the country as a hub for digital creativity. The IFC programme aligns with broader efforts to strengthen financial inclusion and economic development in the region. (techtrendske.co.ke)
