KCB Bank Kenya and IFC have signed a partnership that will help catalyze the growth of climate finance in Kenya by increasing support for businesses addressing climate change.
IFC will extend a $150 million (Ksh18 billion) loan to KCB Bank Kenya to fund the growth of the bank’s climate finance portfolio, with a specific focus on financing the development of energy efficiency projects, renewable energy, climate-smart projects, and green buildings. Through the partnership, IFC will support the bank to develop a climate finance strategy and build its capacity for climate risk assessment and reporting.
“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,” said KCB Group Chief Executive Officer Paul Russo.
“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 Government of Kenya has committed to reducing national greenhouse gas emissions by 32 percent by 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.
“Recurring natural dįsasters 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.
