Kenya: Eco Business Fund provides US$10 million loan to Co-operative Bank to support agribusiness
Eco Business Fund, an impact investment fund offering green finance, on April 1, 2021, provided Co-operative Bank of Kenya with a Sh1.1 billion ($10 million) loan to support agribusiness in Kenya.
“This new partnership with Eco Business Fund, which is making available $10 million for on-lending to farmers, is a win-win on many fronts,” Co-op Bank managing director Gideon Muriuki said in a statement from the bank. He said the loan would provide much-needed funding for agricultural businesses, especially in light of the Covid-19 difficulties many businesses are facing.
Agriculture accounts for about a third of Kenya’s gross domestic product (GDP), but bank lending to the sector remains low. This limits the ability of producers and processors to invest in sustainable production practices.