KCB receives US$150 Million from IFC for SMEs Lending and Climate Finance

The International Finance Corporation (IFC) has approved a 150 million USD deal with Kenya’s KCB Bank to support the latter’s sustainable climate finance portfolios and the growth of SMEs and women entrepreneurs by scaling up lending. KCB has strategically embedded environmental sustainability in its portfolio and transactional levels across all business areas.

The new credit line intends to contribute to economic growth by creating employment and developing green lending.

KCB’s CEO says the partnership with IFC will enable the bank “to support the economy as the country begins recovery from the impact of COVID-19. It will enable us to open a path for more credit to the Small and Medium-Sized entrepreneurs.”

Oigara adds that the financing is going to close acute financial gaps by expanding financing to SMEs and special market programs like women and youth-owned enterprises. In addition, it complements the MSME guarantee scheme which is the government’s effort to avail funding to important sections of the country.

KCB is required to impart knowledge, drive innovation, and build capacity while IFC offers training in the areas of green finance as per the agreement.

KCB was made the ideal partner due to incorporating the Social and Environmental Management System since 2015.

In addition, KCB was the only East African bank to join the 30 founding banks under the auspice of UNEP-FI to develop and launch Principles for Responsible Banking which are guiding tools for global banking industry players aspiring to run sustainable businesses.