Bank of Africa gets Sh535 million in IFC loan loss cover
The Kenyan branch of Bank of Africa (BOA) is set to receive $5 million (Sh535 million) worth of insurance against loan defaults from the International Finance Corporation (IFC).
BOA intends to expand its lending to small and medium-sized firms by up to $10 million (Sh1 billion) and will get guarantees on half the amount from the international financier.
The discussions with IFC come at a time when the bank has registered losses, forcing it to reduce lending amid breach of critical capital buffers.