Nairobi, Kenya, September 7, 2022—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 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 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 reduce national greenhouse gas emissions by 32 percent through 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 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. "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 own 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.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About KCB Bank Kenya Limited
KCB Bank Kenya Limited is the largest commercial bank in the country. A subsidiary of KCB Group Plc, the Bank has the largest branch network, with over 200 branches, 367 ATMs, and 16,000 agents offering banking services on a 24/7 basis in East Africa. This is complemented by mobile banking and internet banking services with 24-hour contact center services for our customers to get in touch with the Bank. KCB Group Plc- which also has a presence in Uganda, Tanzania, South Sudan, Burundi, Rwanda, and a representative office in Ethiopia also boasts of a wide network of correspondent relationships totaling over 200 banks across the globe and our customers are assured of seamless facilitation of their international trade requirements wherever they are. For further information, please visit https://ke.kcbgroup.com/
