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KCB and Proparco enters Sh12.4 billion green financing deal

The project is expected to maintain nearly 100,000 jobs.

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by VICTOR AMADALA

Business16 May 2024 - 18:00
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In Summary


  • At least 30% of the credit line will be allocated to women entrepreneurs.
  • KCB will use the funds for onward lending to projects that prioritize environmental sustainability.
KCB Bank Group Chief Executive Officer Paul Russo

KCB Bank Kenya and Proparco, a subsidiary of Agence Française de Développement(AFD) Group, have partnered to finance climate-related investment projects in Kenya.

The $95 million (Sh12.4 billion) signed on the sidelines of the 2024 Africa CEO Forum in Kigali will also be used to empower women entrepreneurs in the country.

The project is a syndication of European Financing Partners (EFP), led by Proparco, which is contributing $35 million and $60 million, respectively.

KCB will use the funds for onward lending to projects that prioritize environmental sustainability and high social impact, particularly in the health and education sectors.

Notably, at least 30 percent of the credit line will be allocated to women entrepreneurs, aligning with the "2X Challenge", an initiative by G7 development institutions aimed at promoting women's economic empowerment.

“Climate change is the defining issue of our time. This credit line enables us to scale up our financing efforts to accelerate the green transition in Kenya,'' KCB Group CEO Paul Russo said.

The project is expected to maintain nearly 100,000 jobs in the various sectors financed, especially in the small and medium-sized enterprises (SMEs) sector, which forms the backbone of Kenya’s economy.

Proparco CEO Françoise Lombard hailed KCB's efforts to contribute to Kenya's economic growth

KCB has continued to deepen its commitment to its Sustainability and ESG priorities where it supports 14 Sustainable Development Goals anchored on corporate social investments and driving sustainable business practices.

"The partnership not only advances a more sustainable and inclusive future but also underscores a shared commitment to fostering sustainable development, economic resilience, and gender equality in Kenya."

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