National Bank of Kenya (NBK) has partnered with African Guarantee Fund (AGF) to offer a partial guarantee in respect of defaults arising from loans to various private and public sector SMEs.

Paul Russo has been the Managing Director National Bank of Kenya (NBK) and the KCB Group Regional Business Director.

The move enabled NBK to meet core capital ratios after being in default in recent years. It increases the total cash injection by KCB into Equity to Ksh8.45 billion.

A statement from the NSE said the formerly state-owned bank, which now operates as a subsidiary of KCB, will leave the NSE on 25th November, marking yet another low moment for the stock market.

NBK Managing Director Paul Russo said the quarter was marked by pockets of slow recovery from effects of the COVID-19 pandemic due to the gradual reopening of the economy after a period of subdued activity. “Having received a boost in Tier 2 Capital from the KCB Group PLC, we are now well positioned to continue growing the business and supporting our customers to weather effects of the pandemic. Further, the capital injection enhances our compliance with regulatory ratios,” added Mr Russo.

The bank’s corporate and retail franchises remained resilient in the subdued economy with reduced activity across sectors. During the period, NBK rolled out a raft of interventions to cushion customers from effects of the pandemic for continuity of their businesses and a reprieve from the financial strain. The bank restructured loans to the tune of over Ksh7 billion and waived fees on digital channels. “Even though the pandemic disrupted our plans, slowed our recovery journey, and impacted the business and our people, we still managed to deliver some growth. This is an indication that our fundamentals are solid and remained resilient to the shock,” said NBK Managing Director Paul Russo.