AfDB Approves $60m Trade Finance Guarantee for Equity Bank Kenya
The African Development Bank Group has approved a $60 million Trade Finance Transaction Guarantee facility for Equity Bank (Kenya) Limited, aimed at improving access to trade finance for small and medium-sized enterprises (SMEs) and strengthening regional trade.
The facility will allow Equity Bank to provide guarantees of up to 100 percent to confirming banks against non-payment risks linked to Letters of Credit and similar trade finance instruments issued in Kenya.
This support is expected to ease import financing constraints for SMEs and local corporates, while also promoting intra-African trade in line with the African Continental Free Trade Area (AfCFTA) objectives.
Speaking after the approval, the African Development Bank’s Trade Finance Division Manager, Lamin Drammeh, said supporting trade across the continent remains a key priority for the Bank.
He noted that trade finance plays a critical role in Africa’s economic development by enabling domestic and international trade, stimulating economic growth, and advancing regional integration.
Drammeh added that the Bank was pleased to partner with Equity Bank, citing its strong market presence and deep local knowledge.
Equity Bank (Kenya) Limited Managing Director, Moses Nyabanda, welcomed the facility, describing it as timely support for Kenyan businesses, particularly SMEs that continue to face challenges in accessing affordable trade finance.
He said the guarantee would strengthen the bank’s ability to help local enterprises manage risk, trade with confidence, and sustain their operations.
Nyabanda added that the facility would enable Equity Bank to expand access to essential trade finance instruments, ensuring smoother and more secure transactions for importers and supporting business growth across the country.
