KCB receives Ksh18B loan from IFC
The Kenya Commercial Bank (KCB) has received a $150 million (Ksh18 billion) loan from the International Finance Corporation (IFC) to fund the growth of the bank’s climate finance portfolio.
The loan will be used to finance the development of energy efficiency projects, renewable energy, climate-smart projects, and green buildings.
"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 the sustenance of the current and future generations,” the Group Chief Executive Officer Paul Russo said.
“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.”
The latest World Bank Kenya Economic Update estimates that up to five million people need food assistance due to drought and rising food insecurity.
“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," Amena Arif, IFC Country Manager for Kenya said.
"Our partnership with KCB Bank Kenya will increase access to climate finance in the country and enable the development of more green projects that support Kenya to respond to the effects of climate change and shift to a greener development model."
A 2019 IFC report estimated that Nairobi has an $8.5 billion climate investment opportunity for the period between 2018 to 2030, $5 billion of which lies in electric vehicles and the rest in public transport, green buildings, water, renewable energy, and waste.
The loan is part of IFC’s growing work in Kenya to increase the amount of climate financing available.