The Board of Directors of the African Development Bank Group has approved a $60 million Trade Finance Transaction Guarantee facility to support the trade finance activities of Equity Bank (Kenya) Limited.

The facility will enable Equity Bank to provide guarantees of up to 100 percent to confirming banks for non-payment risks arising from the confirmation of Letters of Credit and similar trade finance instruments that it issues in Kenya. The facility will provide much needed import trade finance requirements to small- and medium-sized enterprises (SMEs) and local corporates in Kenya. It will also support intra-Africa trade, thus directly contributing to the successful implementation of the African Continental Free Trade Area agenda.

Following the approval, African Development Bank Trade Finance Division Manager, Lamin Drammeh said: "Supporting trade in Africa is a key priority at the African Development Bank. Trade finance is essential for Africa's economic development, facilitating both domestic and international trade, boosting economic growth, and promoting regional integration. We are delighted to work with Equity Bank, a strong partner with extensive knowledge and network in the country, on a shared ambition of supporting the region's trade."

Commenting on the approval, Moses Nyabanda, Managing Director, Equity Bank (Kenya) Limited, said the facility comes at a pivotal time for Kenyan businesses, especially SMEs, that continue to face significant barriers in accessing affordable trade finance. "The African Development Bank's support strengthens Equity Bank's capacity to unlock growth opportunities for local enterprises by enhancing their ability to trade with confidence, manage risk, and sustain their operations," Nyabanda said.

"With this guarantee, Equity Bank will expand access to essential trade finance instruments, enabling importers to transact smoothly and securely," he added.