Equity Bank has entered into a partnership with the Netherlands FMO development bank with the signing of a NASIRA loan portfolio guarantee facility for Covid-19 support.
The $50 million (Sh5.5 billion) facility is the second NASIRA guarantee signed with Equity with the support of EU funding.
With the funding, Equity Bank Kenya will further support Kenyan entrepreneurs during these challenging times with a special focus on micro, small and medium enterprises (MSMEs), it said in a statement on Thursday.
The FMO funding will provide a NASIRA loan portfolio guarantee covering loans provided to MSMEs affected by the Covid-19 crisis, including women and young entrepreneurs and companies in the agri-value chain.
The guarantee mitigates Equity’s risk in the MSME segment which has heavily borne the brunt of the pandemic.
NASIRA is an innovative financial program that supports young, female, and migrant entrepreneurs in Sub-Saharan Africa and countries neighboring Europe.
FMO is the Dutch entrepreneurial development bank.
As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. This is such a great move that will really support women entreprenuers