KCB Bank Kenya has secured a $150 million loan from the International Finance Corporation (IFC) 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.
IFC through the partnership will support the bank to develop a climate finance strategy and build its capacity for climate risk assessment and reporting.
KCB Group Chief Executive Officer Paul Russo said, “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. 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.
IFC Country Manager for Kenya, Amena Arif said, “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. Our partnership with KCB Bank Kenya will increase access to climate finance in the country and enable the development of more green projects that support Kenya to respond to the effects of climate change and shift to a greener development model.”
IFC is committed to growing its climate-related investments globally to an annual average of 35 percent of its account in three years and working with financial institutions to finance projects supporting mitigation and adaptation. A 2019 IFC report estimated that Nairobi has an $8.5 billion climate investment opportunity for the period 2018 to 2030—$5 billion of which lies in electric vehicles and the rest in public transport, green buildings, water, renewable energy, and waste. The loan to KCB is part of IFC’s growing work in Kenya to increase the amount of climate financing available.
