Private sector operations in Kenya : ADB grants a line of credit to KCB
Since its incorporation, KCB has emerged as the largest bank in Kenya's financial sector. The KCB Group has the widest network of outlets in the country, comprising 113 full-time branches and 35 satellite branches representing over 55% of the total banking outlets in Kenya. Of these, 80% are located the rural areas, with representation in all administrative districts. All branches provide a comprehensive range of Retail, Personal, and Corporate banking as well as other financial services. KCB also established a network of over 400 correspondent banks worldwide.
The LOC will support expansion and rehabilitation projects, particularly those with foreign currency income streams, in sectors such as manufacturing, building and construction, transport, leasing, agro-business, tourism, services, etc.
Economic benefits likely to accrue from the sub-projects include an estimated 2000 new employment, and additional 500 associated job opportunities in rural and urban areas of Kenya. In addition, the project will generate an estimated US$ 35 million in foreign exchange earnings, and induce transfer of technology, development of local entrepreneurship and enhancement of technical skills. The sub-projects will contribute to Government revenues in the form of value-added, income and corporation taxes.
Prior to KCB LOC, the Bank through its private sector window has to-date approved three (3) operations in Kenya which are all well performing, namely: a US$2 million investment in the Acacia Equity Fund for SMEs in October 1996, a US$1million equity investment in 1999 to K-Rep Bank a successful Micro-finance institution that has recently been converted into a Micro-Finance bank, and a US$ 7 million LOC to CFC Bank in October 2003.