Page 6 - AfrElec Week 37 2022

AfrElec INVESTMENT AfrElec

KCB Bank secures $150mn

loan from IFC to boast climate

finance in Kenya

KENYA THE International Finance Corporation (IFC) 7 press release.
has partnered with KCB Bank Kenya to help the Kenya’s government has committed to reduce
financial institution increase support for local national greenhouse gas emissions (GHG) by
businesses addressing climate change. 32% through integrating climate change adap-
IFC, the World Bank Group’s private sec- tation into national- and county-level develop-
tor lending arm, will extend a $150mn loan to ment planning by 2030.
KCB to fund the growth of the bank’s climate Kenya is vulnerable to climate change and
portfolio with a specific focus on financing the the latest World Bank Kenya Economic Update
development of energy-efficiency projects, estimates that up to 5mn people need food assis-
renewable energy, climate-smart projects and tance due to drought and rising food insecurity.
green buildings. IFC Kenya Country Manager Amena Arif
IFC through the partnership will support said the private sector can play a role in mobi-
the subsidiary of Nairobi-listed KCB Group lising resources to finance the green transition
to develop a climate finance strategy and build to address natural disasters like droughts and
its capacity for climate risk assessment and floods that impact the livelihoods of Kenyans.
reporting. “Our partnership with KCB Bank will
KCB Group chief executive Paul Russo said increase access to climate finance in the coun-
the bank is stepping up help to businesses to try and enable the development of more green
curtail adverse impacts of climate change, boast projects that support Kenya to respond to effects
economic growth, food security, job creation in of climate change and shift to a greener develop-
Kenya and build resilience. ment model,” she said.
“We continue to play our role in climate miti- A 2019 IFC report estimated that Nairobi has
gation and adaptation in Kenya in the realization an $8.5bn climate investment opportunity for
that business is no longer just about profits but the period of 2018 to 2030, $5bn of which lies
ensuring that we also take care of our environ- in electric vehicles and the rest in public trans-
ment, ensuring the sustenance of the current port, green buildings, water, renewable energy,
and future generations,” he said in a September and waste.™

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