Kenya Receives US$100m for Climate Projects and Women-Led SMEs
The funding promotes sustainable economic growth in Kenya, where access to finance remains a challenge.
The proceeds will go towards financing climate technology projects and women-led businesses in the nation.
Kenya's KCB Bank has received the provision of a $100 million Tier 2 capital facility from British International Investment (BII) to back climate-related projects and women-led small and medium-sized enterprises (SMEs) in the country.
The aim is to help the bank expand its lending capacity to finance more environmentally and climate-friendly projects in the African country, including those owned by women.
To this end, it will provide financial assistance to businesses in renewable energy, sustainable agriculture, and green transportation. This initiative is also in line with the UN’s Sustainable Development Goals regarding climate action, gender equality, and economic growth.
KCB’s Female-Led and Made Enterprises (FLME) initiative, which helps women, particularly from the informal sector, access finance, will also get a boost from the funds provided by BII. This will address hindrances and other issues faced by women in accessing financial credit, like restrictive policies and cultural barriers.
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Chris Chijiutomi, MD and Head of Africa at BII said: "This facility is a testament to BII's commitment to strengthening Africa's banking sector through partnerships with financial institutions that are driving inclusive and sustainable business growth. Kenya is an important market for BII.
"By providing supplementary capital to KCB Bank Kenya, we are helping to scale investments in climate projects and create more opportunities for women-owned and led businesses - critical to Kenya's economic development trajectory and a national plan for green growth."
The funding will also support the 2X Challenge, which helps women entrepreneurs run their businesses smoothly and uphold gender diversity in business. Meanwhile, KCB has provided KShs. 50 billion annually to women-owned businesses and KShs. 150 billion under the FLME initiative since 2022.
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Daniel Wilcox, Economic Counsellor & Head of Prosperity and Climate at the British High Commission Nairobi, added: “The UK is a long-term partner providing long-term investment in Kenya, as we work together to deliver mutual economic growth for both our nations. Kenya has a vibrant and entrepreneurial business environment, but access to finance continues to be a constraint. We look forward to working closely with KCB to deliver the needed change and impact for businesses.”
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Source: KCB
