International Finance Corporation (IFC), together with World Bank, have committed to give $2 million to Kenya and other developing countries. The money is meant to develop new financing avenues for private companies.
The programme, alias Joint Capital Market Development Program (J-CAP) seeks to diversify lending away from the customary reliance on bank loans. This is to shield companies seeking credit with longer lifespans, seeing as most bank loans mature within a short period.
Therefore, J-CAP will seek resources from major pension funds to offer loans denominated in the local currency
The project aims to develop and enable the use of capital markets to mobilise long-term financing for key sectors, with a focus on housing and infrastructure, by combining public and private sector operations to introduce new products and instruments for a sustainable economic growth.
Statement from IFC
The Capital Markets Authority will regulate the programme, which will run until 31st October 2020.
The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. It is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.