Kenya’s Co-op Bank secures $140M from IFC to expand MSME lending and dedicate $35M to women-owned businesses, advancing inclusive growth and financial access.
Nairobi, Kenya – September 24, 2024 —
In a major step for financial inclusion, the Co-operative Bank of Kenya has secured a $140 million loan from the International Finance Corporation (IFC).
The funds will expand affordable loans for micro, small, and medium-sized enterprises (MSMEs)—which drive Kenya’s economy—and dedicate 25% of the amount to women-led businesses.
“This facility will help us scale up support to MSMEs, the engine of our economy.”
— Dr. Gideon Muriuki, CEO, Co-op Bank Kenya
MSMEs in Kenya generate over 80% of jobs and contribute around 40% of GDP, according to the Kenya National Bureau of Statistics (KNBS).
This new facility, structured in both U.S. dollars and Kenyan shillings, helps cushion borrowers against currency risks. Key focus areas include:
- Agriculture
- Manufacturing
- Trade and Commerce
- Digital and professional services
This aligns with Kenya Vision 2030, the country’s national blueprint for inclusive economic growth.
“Investing in women entrepreneurs drives inclusive growth.”
— Amena Arif, IFC Country Manager, Kenya
Out of the $140 million, $35 million is reserved for women-owned businesses. This targets a longstanding issue—Kenyan women-led MSMEs face an annual $3 billion financing gap, according to a 2024 IFC report.
The support will help women-led ventures scale operations in sectors like:
- Agribusiness
- Retail
- Technology
- Education
It also contributes to UN SDG 5: Gender Equality.
Co-op Bank, Kenya’s third-largest lender, serves over 8.1 million customers through its unique SACCO-linked model. It combines commercial banking with community-based cooperatives, extending financial services to underserved areas.
This model boosts:
- Access to credit in rural regions
- Digital financial literacy
- Affordable mobile banking services
In October 2024, the bank was named Africa’s Best SME Financier at the Global SME Finance Awards.
“With IFC’s support, we’ll keep building digital platforms that empower MSMEs,”
— Charles Washika, Director of ICT & Innovation, Co-op Bank
While the IFC facility offers relief, MSMEs still face serious challenges, including:
- Currency depreciation
- High interest rates
- Climate shocks
The funding includes technical assistance, helping Co-op Bank build more resilient MSME portfolios.
Analysts at Cytonn Investments say global partnerships like this are critical for stabilizing Kenya’s credit markets during times of economic volatility.
The first loan disbursements are expected by mid-2025, prioritizing rural regions and high-impact sectors.
This deal marks a turning point in Kenya’s post-pandemic recovery. It sends a strong message: inclusive finance is smart finance.
“As we grow our MSME portfolio, we also advance the national goals of financial inclusion and gender equality,”
— Dr. Gideon Muriuki, CEO, Co-op Bank
The partnership between Co-op Bank and IFC sets the tone for how local banks can lead development—not just with capital, but with purpose.
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