African based French investment firm Alios Finance, has officially set up shop in Kenya. The firm, which has been operating in Africa for the past 56 years, moved its head office from Tunis to Nairobi. It recently received a USD9 million loan from the International Finance Corporation (IFC) which will be used to invest in Small and Medium Enterprises (SMEs) within the region.
“The Partnership with IFC will enable Alios Finance Group to increase the number of finance solutions we provide to Kenyan and Tanzanian entrepreneurs” said the company CEO, Jan Albert Valk.
USD5 billion from the fund will be used to finance Kenyan SMEs while the rest will go to Tanzania. The company will issue equipment loans and leases in bundles of as much as USD50,000.
The firm intends to charge the same general interest rates as Kenyan banks. Mr Valk noted that despite the similar charges, Alios Finance will structure deals which will be specific to its clients. The lender will adjust its policies based on a client’s cash flow and repayment capacity. He said that the company hopes to contribute to social and economic development in the region.