(Ecofin Agency) - Kenya Commercial Bank is close to concluding a loan for a maximum amount of $150 million to strengthen its capital and support SMEs that develop environment-friendly projects. Particular focus is on women-led businesses.
$101.7 million of the money will come from the International Finance Corporation (IFC). The Belgian Investment Company for Developing Countries (BIO) will provide $22 million, while the Sanad fund, which finances SMEs in the Middle East and sub-Saharan Africa, and Symbiotics, the investment platform targeting companies in emerging markets, will contribute $15 million and $11.2 million respectively.
“This support from IFC and our partners will help KCB Bank Kenya expand its portfolio of climate-friendly projects and reach smaller businesses at a time when many are facing COVID-19-related challenges. Supporting green projects and smaller businesses will help Kenya recover faster from the current economic slowdown and build a more resilient and sustainable economy,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.
In October 2020, KCB Group's Kenyan subsidiary obtained a similar $150 million loan from the IFC to finance environmental and climate change projects in the country.
Companies with short-term cash flow needs as well as those seeking to finance expansion in the country will be eligible for loans from KCB Bank Kenya.