KCB Group Kenya is aiming to secure a Sh15.2 billion ($118.25 million) loan from the Green Climate Fund (GCF) to support SMEs working on climate-friendly solutions. The initiative aims to drive sustainable economic growth while addressing pressing environmental challenges.
KCB bank has already obtained an initial KSh 69 million ($554,000) through the GCF’s Project Preparatory Facility to conduct feasibility studies, assess climate risks, and design an operational framework for the larger funding tranche expected in 2025.
KCB Group CEO Paul Russo highlighted the role of technology in creating sustainable jobs and a greener future for MSMEs.
“This milestone represents a significant step forward. By empowering our MSMEs with climate-smart technologies, we are taking decisive action to tackle environmental jobs while fostering local economic growth and creating sustainable jobs within our communities. We believe by investing in sustainable practices, we can build a brighter, more resilient future for all.” said KCB Group CEO Paul Russo.
The agreement was finalized during the 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC). This marks a significant achievement for KCB, which became the first financial intermediary in the region to be accredited by the GCF in 2020.
- COP29 is being held in Baku, Azerbaijan, from 11 to 22 November 2024.
- KCB Bank played a prominent role at #COP29 by participating in the 5th Africa Adaptation Acceleration Program (AAAP) Partnership Forum.
- The event focused on expanding access to climate-smart digital technologies and data-driven agricultural and financial services for 30 million African farmers, aiming to boost agricultural productivity by 70% through nature-based solutions.
KCB plans to use the Project Preparatory Facility to conduct program feasibility studies, assess climate vulnerabilities, and establish an operations manual for implementing climate-smart technologies.
Read: KCB Reports Progress on Climate Action and Social Programs in 2023 Sustainability Report
The GCF is the world’s largest climate financing mechanism, established in 2010 by 194 countries under the UNFCCC. Its mission is to help developing nations mitigate greenhouse gas emissions, adapt to climate change, and transition to low-emission, climate-resilient economies. The fund prioritizes equal distribution between mitigation and adaptation projects, particularly for nations most vulnerable to climate impacts.
Following the adoption of the Paris Agreement in 2015, the GCF was tasked with supporting the global goal of limiting temperature rise to well below 2°C. Advanced economies have committed to mobilizing substantial financial resources for climate action, with the GCF serving as a key platform for channeling these funds to developing nations.