KCB Bank Kenya has secured Ksh 18 billion ($150 million) from the International Finance Corporation to advance credit to green projects in Kenya.
KCB Group Chief Executive Officer Paul Russo has said the climate finance loan will accelerate lending to businesses which are targeting to address climate change across Kenya.
“We continue to play our role in climate mitigation and adaptation in Kenya in the realization that business is no longer just about profits but ensuring that we also take care of our environment, ensuring sustenance of the current and future generations. KCB is stepping in to help businesses curtail the adverse impacts of climate change, thus boosting economic growth, food security, and job creation in Kenya and building resilience,” said Russo.
KCB will use the funds to finance development of energy efficiency projects, renewable energy, climate-smart projects, and green buildings.
Additionally, the two will collaborate in developing a climate finance strategy and build its capacity for climate risk assessment and reporting.
“Recurring natural disasters like droughts and floods have impacted the livelihoods of Kenyans and the country’s economic development. The private sector can play a significant role by mobilizing financial resources to help finance the country’s green transition,” said Amena Arif, IFC Country Manager for Kenya.
The Government of Kenya has committed to reducing national greenhouse gas emissions by 32pc through integrating climate change adaptation into national and county-level development planning by 2030.
Kenya is vulnerable to climate change and the latest World Bank Kenya Economic Update estimates that up to five million people need food assistance due to drought and rising food insecurity.
IFC targets to increase its climate-related investments globally to an annual average of 35pc of its own account in three years and working with financial institutions to finance projects supporting mitigation and adaptation.
A 2019 IFC report estimated that Nairobi has an $8.5 billion climate investment opportunity for the period 2018 to 2030—$5 billion of which lies in electric vehicles and the rest in public transport, green buildings, water, renewable energy, and waste.
