Nairobi, April 15 -- Bank of Africa (BOA) Kenya tapped $10 million (Sh1.3 billion) loan in the financial year ended December for on-lending in foreign currency amid a widespread dollar shortage that was being reported in the market.

The bank says in its latest annual report that its parent firm, BMCE Bank of Africa, which owns a 72.41 percent stake, lent it the money with a repayment period of three years.

"An unsecured three-year term loan of $10 million from BOA Group SA for the development of the bank's lending business in foreign currency," said the lender.

BOA Kenya is controlled by Luxembourg-incorporated BOA Group SA, with its ultimate parent being BMCE Bank which is incorporated in Morocco.

The dollar loan points to the interv...