KCB Group has received KSh16.2billion ($150 million), from the International Finance Corporation (IFC) to support the growth of the Bank’s sustainable climate finance portfolio and scale-up lending to micro, small and medium enterprises.
“The facility is aligned with our green financing goals, will enable us to expand our financing to SME and special market segments like women and youth-owned enterprises that are critical to the growth of the economy, but are facing acute financing gap,” KCB Group Chief Executive Officer and Managing Director Joshua Oigara said.
“It complements Government’s effort, through the MSME guarantee scheme, to avail funding to this important section of our economy,” he added.
The financing is in line with the bank’s sustainability agenda to support a climate-resilient economy and reinforces commitment to the Principles of Responsible Banking.
In 2019, KCB Group joined 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.
Since 2015 KCB Bank has incorporated the Social and Environmental Management System (SEMS) into the lending process making it the ideal partner for this facility in Kenya.
The Kenyan banking industry in March 2015 adopted the Sustainable Finance Initiative (SFI) Guiding Principles that guide the banks in balancing their business goals with the economy’s development priorities and socio-environmental concerns.
In 2016, the Kenyan Bankers Association launched the Sustainable Finance Catalyst Awards to celebrate institutions that practice catalytic finance which has a direct impact on the financial industry, the economy, and the society at large.