The International Finance Corporation (IFC) has signed an agreement to provide KCB Bank Kenya with $150 million in loan financing to fund the development of smart energy projects aimed at boosting the country’s climate action initiatives.
KCB will leverage the IFC loan to support businesses deploy energy efficiency, renewable energy, climate smart and green buildings projects.
The loan will also be used to boost KCB Bank Kenya’s 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 sustenance of the current and future generations,” KCB Group Chief Executive Officer Paul Russo, said.
According to a study conducted by the IFC, the impact of climate change on the Kenyan economy investments in climate mitigation are anticipated to rise to $5 billion through 2030. Therefore, optimizing the bank’s climate risk assessment will be vital in driving investments and projects development to mitigate climate change.
The loan and related projects are expected to help the government of Kenya to achieve its target of reducing greenhouse gas emissions by 32% by 2030 while improving food and energy security as well as economic growth.
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“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.