Equity Bank Kenya, the flagship subsidiary of James Mwangi’s formidable Equity Group, has secured a $60 million trade finance guarantee from the African Development Bank (AfDB) to bolster its support for small and medium-sized enterprises (SMEs) navigating the complexities of cross-border trade.
This facility is designed to mitigate risk for international correspondent banks, thereby unlocking vital credit and liquidity for Kenyan businesses engaged in import and export.
The guarantee allows Equity to back trade instruments like letters of credit, providing confidence to global financial partners and ensuring smoother settlement of transactions for its clients, particularly SMEs who often face the steepest barriers to trade financing.
The deal comes as Equity Group continues its strong financial performance, having reported a 28% jump in net profit to Ksh 44.5 billion ($318 million) for the first nine months of 2025, driven by significant growth in its regional subsidiaries.
This partnership directly aligns with the strategic goals of both institutions.
For the AfDB, the guarantee is part of its broader mission to reduce Africa’s estimated $100 billion annual trade finance gap and support local banks with deep community roots.
For Equity Bank, it is a crucial component of James Mwangi’s “Africa Recovery and Resilience Plan,” an ambitious strategy to finance the continent’s economic rebound by mobilizing billions for private sector investment.
Moses Nyabanda, Equity Bank’s Managing Director, emphasized the timing, stating the facility is critical for Kenyan SMEs grappling with high import costs and currency volatility.
The guarantee also reinforces the goals of the African Continental Free Trade Area (AfCFTA) by promoting intra-African trade and strengthening regional supply chains.
Under Mwangi’s leadership, Equity has transformed into a Pan-African powerhouse with a presence in six countries, and this AfDB partnership further cements its role as a key financial engine for East African commerce.
