KENYA – KCB Bank Kenya, a financial service provider, has secured US$95 million from Proparco, a subsidiary of Agence Française de Développement(AFD) Group, for climate-related investment projects in Kenya.
The US$95 million 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 US$35 million and US$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 saying that “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.”
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.
In March this year, The Bill & Melinda Gates Foundation and the European Investment Bank (EIB) announced that they are to provide €30 million (US$32.17m) to KCB Bank Kenya to strengthen women’s economic power in Kenya by tackling critical barriers to financial inclusion.
This first scheme, to be launched in the coming weeks, will improve access to microfinance across Kenya and be managed by KCB Bank Kenya under their dedicated Female-Led and Made Enterprises (FLME) and KCB Foundation 2jiajiri initiatives.
It will leverage critical learnings to enhance the impact of further gender equality engagement across Africa as the cooperation is expanded in the coming years.
FLME is a KSh250 billion (US$1.851bn) initiative launched two years ago to create flexible, accessible, and affordable solutions for women entrepreneurs.
It is a 360 degree-intervention platform that seeks to fill the gap where traditional lenders have failed by supporting women and young people to navigate the complex entrepreneurial journey.
FLME has emerged as a catalyst for improving relationships with KCB female customers, understanding their business, increasing their access to finance, and providing much-needed business advisory.
As a result, the bank has disbursed loans worth KSh111.6 billion (US$822m) to over 600,000 FLME customers, while the total FLME portfolio constitutes 35% of KCB’s SME loan book.
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