The International Finance Corporation (IFC) has signed an agreement with the Bank of Africa Kenya, which envisages IFC providing BOA Kenya with cover against losses on loans extended to SMEs up to the equivalent of US$5 million (Sh650 million). IFC is the lending arm of the World Bank focused exclusively on the private sector. Under the agreement, the IFC will also provide the tier-three bank with advisory services on mitigating risk as it shifts its focus to SME lending, which is considered one of the riskiest segments for the banking sector.
