Wednesday, June 19, 2024
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KCB Bank and Proparco sign US$95M credit line for sustainable projects and women support

KCB Bank Kenya and Proparco, a subsidiary of Agence Française de Développement (AFD) Group, have entered into a strategic partnership to finance climate-related investment projects and empower women entrepreneurs in Kenya.

The two institutions signed a $95 million credit line on the sidelines of the 2024 Africa CEO Forum in Kigali. The project is a syndication of European Financing Partners (EFP), led by Proparco, which is contributing $35 million and $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% 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, build on the success of our women proposition, and ultimately contribute to a more inclusive, sustainable, and resilient development,” 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.

“I am delighted to sign today a partnership between Proparco and a bank as committed as KCB to reducing inequalities and protecting the planet. KCB’s efforts to contribute to Kenya’s economic growth and resilience make it a key partner for Proparco,” Françoise Lombard, Chief Executive Officer of Proparco said.

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. Of which, the Bank is committed to positioning itself as a leading green financier.

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, thereby advancing Sustainable Development Goals 13 (“Fight climate change”), 5 (“Gender equality”), and 8 (“Decent work and economic growth”).

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