Dutch Development Bank FMO has granted a loan of $40m to I&M Bank Kenya, to boost lending to small and medium sized enterprises in the country. 

Linda Broekhuizen, CIO of FMO, said: “I&M Bank Kenya really fits our strict selection criteria. The bank has good performance, a strong reputation and has been successful in SME lending. By supporting the expansion of its operations, FMO can help give the local economy an extra boost. ”

I&M Bank already has a long and successful track record in SME finance in the region and has been a client of FMO since 2010.

The loan has a five-year tenor. 

The bank has a loan portfolio of approximately $1.2bn of which almost 30% consists of loans to SME-customers.

I&M Bank Kenya is the flagship of a successful regional banking group. FMO has also granted loans to I&M Bank Tanzania, 70% owned by I&M Bank Kenya. 

The main sectors in the portfolio of I&M Bank Kenya are manufacturing, trade, real estate and building and construction.

At the end of 2016 the bank launched a five-year strategy which aims to double the bank’s market share by 2022, partly through digitalizing the business by improving online sales and servicing. 

I&M Bank Kenya is fully owned by I&M Holdings (IMHL), a listed non-operating entity.