Kenya’s Richest Families Lead NCBA to Secure $50M Loan from Proparco

NCBA Group, a leading financial services conglomerate owned by some of Kenya’s wealthiest families, has secured a $50 million loan from French financier Proparco. The loan is intended for on-lending to small and medium-sized firms (SMEs) as well as those committed to combating climate change concerns.

According to sources at the Nairobi-based lender, 60% of the loan will be awarded to SMEs, with the remaining 40% going to enterprises addressing climate change concerns. This strategic investment demonstrates NCBA’s dedication to advancing sustainable economic development and green financing initiatives.

John Gachora, CEO of NCBA Group, stressed the financing’s significance in light of the institution’s sustainability goals. “Collaborative efforts and strategic partnerships are integral to the value we deliver to our stakeholders,” Gachora said. “This partnership with Proparco will deepen our shared goals of advancing sustainable economic development, green finance, and empowering women and youth.”

Audrey Maignan, Proparco’s East Africa head, expressed confidence in the relationship, citing its potential to benefit at least 1,600 SMEs. Maignan emphasized Proparco’s commitment to climate change mitigation and adaptation, pointing out that the investment is consistent with NCBA’s goal of increasing lending to small enterprises and women-led entities.

The investment signifies a continuation of NCBA Group and Proparco’s previous successful collaborations. Proparco made large investments in the Kenyan economy between 2022 and 2023, primarily through banks, and hopes to announce additional funds soon.

NCBA Group is headquartered in Nairobi and works as a non-operating holding company with a large network of subsidiaries throughout Africa, including Tanzania, Rwanda, Uganda, and Côte d’Ivoire. NCBA Group, formed in 2019 by the merging of NIC Bank Group and Commercial Bank of Africa Group, has emerged as a significant participant in the East African financial sector.

The company, which is partially controlled by renowned Kenyan families such as Kenyatta, Merali, and Ndegwa, remains committed to improving its activities in Kenya while growing its impact across the region.

The $50 million loan from Proparco marks a key milestone for NCBA Group as it continues to create long-term economic growth and help SMEs in Kenya. With an emphasis on green finance and equitable development, the alliance emphasizes the value of collaboration in addressing important global challenges.

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