International Finance Corporation Regional Director for eastern Africa Jumoke Jagun-Dokunmu. PHOTO | DIANA NGILA 
Summary
- IFC says in its latest annual report that it had invested a cumulative Sh305 billion in the form of debt and equity in Kenyan firms during the review period.
- The global financier has invested in about 125 local firms so far, including Equity Bank, Kenya Tea Development Agency Holdings and Britam Holdings.
The International Finance Corporation (IFC) invested an
additional Sh13.4 billion in Kenyan companies in the year ended June,
cementing its role as one of the biggest investors in the local market.
The
global financier says in its latest annual report that it had invested a
cumulative Sh305 billion in the form of debt and equity in Kenyan firms
during the review period.
This is up 4.5 percent from
291.7 billion the year before. IFC remains one of the largest foreign
institutional investors in the country alongside European Investment
Bank (EIB), the African Development Bank (AfDB) and and sovereign wealth
funds Proparco (French) and KfW (German).
IFC has
invested in about 125 local firms so far, including Equity Bank, Kenya
Tea Development Agency Holdings and Britam Holdings.
Most
of the investments are in form of long-term loans, with IFC acquiring
significant stakes in a few firms. The expansion of IFC’s activities in
the local market has seen companies benefit from relatively easier
access to long-term finance to fund their growth.
Equity Bank is among the lenders that have received loans from
IFC. The country’s second-largest bank earlier this year signed an
agreement to take a $100 million (Sh10 billion) long-term loan from IFC.
The
cash was to be used to shore up the capital of the lender besides
increasing its capacity to lend to local small and medium-sized firms.
IFC
did not disclose the cost of the debt but noted that it will be
subordinate –rank below other loans with regard to claims on the bank’s
assets.
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