The African Development Bank (AfDB) has approved two credit lines worth a total of US$90mn to support SMEs in Kenya and boost trade finance in Africa.

The financial package includes a US$50mn line of credit and a US$40mn trade finance line of credit extended to the Commercial Bank of Africa, which will on-lend to SMEs and local corporates in the trade, infrastructure, manufacturing, agriculture, transport and construction sectors in Kenya.

“This intervention will contribute to Commercial Bank of Africa’s efforts to broaden access to its services, thereby reducing financing constraints faced by SMEs and local corporates in Kenya, whilst also reducing Africa’s trade financing gap,” the AfDB says in a statement.

The bank adds that the credit lines will complement the Kenyan government’s Vision 2030, which seeks to revitalise and diversify the economy through infrastructure development and by improving SMEs’ access to affordable credit.

Established in 1962, Commercial Bank of Africa is the largest privately-owned Kenyan bank, with operations in Kenya, Tanzania and Uganda.