Co-op Bank and EBRD Close US$100 Million Deal to Boost Dollar Financing for Kenyan Businesses
By Victor Korir – Nairobi, Kenya
The Co-operative Bank of Kenya and the European Bank for Reconstruction and Development (EBRD) have successfully closed a landmark US$100 million financing programme that will significantly enhance access to competitively priced foreign currency financing for Kenyan businesses.
The programme’s first tranche of US$50 million has been executed through a cross-currency swap transaction, marking the first use of the broader US$100 million facility agreed between the two institutions.
The transaction was formally marked at an event in Nairobi where EBRD and Co-op Bank teams received commemorative plaques to celebrate the deal closure.
Present were Dr Heike Harmgart, Managing Director, Sub-Sahara Africa at EBRD, Ms Mutahe Karuoro, Treasurer, Co-operative Bank, Abdessamad Abouti, Regional Head of Local Currency Portfolio at EBRD, Aude Paccate, Director, Portfolio Management – EMEA, Treasury Department at EBRD, Ben Muriuki, Head – Investor Relations and Strategy at Co-op Bank and Francis Muuna, Head – Financial Institutions at Co-op Bank.
First KESONIA Transaction in Kenya
The deal marks an important milestone for Kenya’s financial sector as it is the first cross-currency swap transaction to utilize the Kenya Shilling Overnight Interbank Average (KESONIA), Kenya’s new benchmark reference rate. The development signals a move from reform design to implementation in Kenya’s local capital markets.
What It Means for Kenyan Businesses
The financing programme strengthens Co-op Bank’s capacity to mobilize and deploy long-term foreign currency funding, enabling more businesses to access dollar-denominated financing at competitive pricing and for longer tenors.
It is particularly significant for export-oriented sectors such as manufacturing, agriculture, agro-processing, horticulture, floriculture, logistics, tourism and other businesses whose revenues or supply chains are linked to international markets.
Through this partnership, Co-op Bank customers will benefit from:
– Improved access to foreign currency financing at competitive pricing
– Longer repayment tenors to support business expansion and capital investment
– Enhanced availability of trade finance and working capital for exporters
– Greater support for businesses in regional and global value chains
– Better management of FX requirements for imports, exports and international contracts
The programme will support businesses that require foreign currency to acquire machinery, equipment, technology and raw materials essential for growth.
