IDB Capital remain at the centre of enabling access to industrial credit
By Bonface Otieno Kanyamwaya
In 1986, TimothyK.Tiampati joined IDB Capital Limited. Currently, he is the Acting Managing Director of the body, which was set up by the Government of Kenya as a Development Finance Institution (DFI) in 1973.
He has seen the parastatal evolve from just offering access to creditto provision of financial services to the industrial sector in furthering economic development of Kenya by assisting in the promotion, establishment, expansion and modernization of medium and large scale industrial enterprises.
The institution supports viable propositions that areenvironmental friendly. The project must be in a position to earn and save the country foreign exchange, support job creation and it must add value to the economy.
Towards the delivery of its mandate, IDB Capital has aligned its operation to key policy guidelines including Kenya Vision 2030 and Kenya Industrial Transformation Programme (KITP).
For the later, the Managing Director says they have contributed to delivery on the credit access component with large proportion having been Small Medium Enterprises (SMEs).
In IDB’s context, SMEs generally refers to target firms or enterprises whose borrowing needs and associated loan repayments is of the average loans sizes of Ksh.5 million (US$ 50,000)to Ksh. 20 million (US$ 2 Million) either for projects establishment orupscaling purposes.
The sub-sectors of primary focus according to Mr. Tiampati include but not limited to manufacturing, tourism, modernizedagriculture, agro-processing or value addition, IT-enabled services, and financial services.
“Among other key consideration in our SME offering are employment generation potential, foreign exchange savings or earnings and the overall contribution to the national economy,” says Tiampati.
Since March 2013, IDB Capital has enabled access to industrial credit to over 17 projects spread across the country thereby supporting nearly 500 direct jobs. These span sectors including building and construction in Nairobi County; in Energy within Murang’a county; in engineering in Kiambu and Nairobi counties; in financial services within Nairobi County; in food and beverages in Kiambu and Nairobi County; health within Kirinyagacounty and Nairobi county as well as in mining and quarrying in Kilifi county of kenya.
In line with Kenya’s economic objective of industrialization, and ensuring equitable distribution of resources, and benefits throughout the country, IDB Capital carries a diversified portfolio of innovative credit products. These include asset finance, project finance, working capital finance and bridge finance that address specific customer needs in various sectors of the economy, such as food processing and beverages, manufacturing, engineering and metal processing, mining and quarrying, health as well as energy, power and transport.This partly delivers on Kenya’s KITP target’s and Kenya’s Vision 2030 blue print.
Nairobi’s Thika Superhighway
$15 Million India Line of Credit for SMEs financing
In view of enhancing bilateral relations between Kenya and India, In July 2016, President Uhuru Kenyatta and Indian Prime MinisterNarendraModi signed US$ 15 million credit line for development of Small Medium Enterprises with IDB Capital being designated the implementing agency in Kenya.
The US$ 15 million line of credit which is near market roll-out in Kenya, IDB Capital envisages lending out between US$ 50,000 and US$ 2 Million at competitive terms to Kenya’s SMEs keen on accessing modern equipment , goods and machinery primarily from India, thereby contributing to technology transfer and related skills.
In the past, the institution has had successful bilateral and multilateral financial collaboration with institutions not limited to Export-Import Bank of India, the World Bank, European Investment Bank, Swiss Investment Corporation, African Development Bank, German Investment Bank, Arab Bank for Economic Development in Africa, Export-Import of China and Export-Import Bank of Korea.
For more information and liason, please contact Mr. Timothy K. Tiampati, the Ag. Managing Director, IDB Capital Ltd P.O.BOX 44036-00100, Nairobi-Kenya. Telephone: (020) 2248600; 2247142; Email: Bizcare@idbkenya.com