KCB RECEIVED US$150M FROM IFC FOR SME LENDING

KCB RECEIVED US$150M FROM IFC FOR SME LENDING

By Donald Kogai

Kenya Commercial Bank received an approval

for US$150 million, from the International

Finance Corporation (IFC) as lead syndicator, to

support the growth of the Bank’s sustainable

climate finance portfolio and scale-up lending

to micro, small and medium enterprises

including women-owned businesses.

This credit line will contribute to the economic

growth of the Kenyan economy by helping

develop green lending and creating

employment, especially for women. KCB Bank

has embedded environmental sustainability at

its strategic, portfolio, and transactional levels

across all business areas.

This financing is aligned with our green

financing goals, and will also 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 & 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.

“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 open a path for more

credit to the Small and Medium-Sized

entrepreneurs,” Oigara said.

“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.”

In 2019, KCB Group was the only East African

Bank joining 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 Social

and Environmental Management System

(SEMS) into the lending process making it the

ideal partner for this facility in Kenya.

According to this agreement, KCB will mobilize

commercial financing into the SME and climate

finance sector in Kenya and also impart

knowledge, drive innovation, and build capacity.

On other hand, IFC will offer training in the

areas of green finance.

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