Kenya lender KCB has received $150 million, from the International Finance Corporation (IFC). With the funds, the Kenyan bank becomes a lead syndicator, to support the growth of the Bank’s sustainable climate finance portfolio and increase lending to micro, small and medium enterprises including women-owned businesses.
According to a statement, the bank states that the credit line will contribute to the economic growth of the Kenyan economy by helping to develop green lending and creating employment, especially for women.
KCB Group Chief Executive Officer & Managing Director Joshua Oigara adds that the financing is aligned with the bank’s green financing goals. He further explained that it will also enable the bank to expand its financing to SME and special market segments like women and youth-owned enterprises which are critical to the growth of the economy, at a time when it is facing acute financing gap.
The CEO added that the financing complements Government’s effort, through the MSME guarantee scheme, to avail funding to this important section of the economy.
“We are happy to partner with the IFC in this innovative financial instrument, which will enable us to support the economy as the country begins recovery from the impact of COVID-19. It will enable us open a path for more credit to the Small and Medium-Sized entrepreneurs,” Oigara said.
The financing is in line with our sustainability agenda to support a climate-resilient economy and reinforces the Bank’s commitment to the Principles of Responsible Banking.”
Last year, KCB Group was the only East African Bank joining another 30 founding banks globally under the auspice of UNEP- FI to develop and launch Principles for Responsible Banking that are guiding tools for global banking industry players aspiring to run sustainable businesses.
In 2015 KCB Bank incorporated Social and Environmental Management System (SEMS) into the lending process making it the ideal partner for this facility in Kenya.
With this agreement, KCB will mobilize commercial financing into the SME and climate finance sector in Kenya. It will also impart knowledge, drive innovation, and build capacity. On its part, IFC will offer training in the areas of green finance.
Copyright: News Central TV
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.