KCB Bank Kenya is set to receive Ksh. 16.3 billion (US$150 million), from the International Finance Corporation (IFC) to scale-up lending to micro, small and medium enterprises and support the growth of the Bank’s sustainable climate finance portfolio.
The financing is aligned with the lender’s green financing goals and it will enable the bank to expand financing to SMEs and special market segments like women and youth-owned enterprises that are critical to the growth of the economy but are facing acute financing gaps.
According to KCB Group Chief Executive Officer Joshua Oigara, the deal complements the Government’s effort, through the MSME guarantee scheme, to avail funding to an important section of the country’s economy.
“We are happy to partner with 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 to open a path for more credit to the Small and Medium-Sized entrepreneurs,” Mr. Oigara said.
The agreement will similarly see KCB mobilize commercial financing into the SME and climate finance sector in Kenya and also impart knowledge, drive innovation, and build capacity. IFC will consequently offer training in the areas of green finance.
“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,” the KCB Group CEO added.
In 2019, KCB Group was the only East African Bank that joined 30 other 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.
Since 2015 KCB Bank has incorporated Social and Environmental Management System (SEMS) into the lending process making it an ideal partner for such facilities in Kenya.