Chase Bank and the French Development Agency have signed a €10 Million (Sh1.12 billion) loan agreement to finance green energy projects in Kenya.

According to Chase Bank’s chief executive Paul Njaga,thefund is to be lent to business owners that want to invest in renewable energy technologies projects such as small hydro, biomass, biogas, solar, geothermal and other energy efficiency measures.

"This is a 12-year facility that will therefore address long term funding requirements in energy projects. The total committed amount is €30 Million (Sh3.37 billion), of which €10 Million will be available immediately for lending," Njaga told the Star News.

AFD's regional director Yves Boudot revealed that the credit line also comes with a technical assistance program that will be controlled by the Kenya Association of Manufacturers.

"This technical and financial offer is particularly important to bring additional solutions to achieve the diversification of energy resources in the East African region and help the region to transition towards sustainable energy solutions that are technically, economically and financially viable," Yves Boudot said.