KCB Bank Kenya has secured a $95 million loan from Proparco for climate investment projects in Kenya.
Proparco is a subsidiary of Agence Française de Développement (AFD) Group, with the deal targeting women entrepreneurs in the country.
The deal was signed in Kigali, Rwanda, on the sideline of the 2024 Africa CEO Forum.
The project is a syndication of European Financing Partners (EFP).
According to the deal, Proparco is contributing $35 million and $60 million, respectively.
“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,” said KCB Group CEO Paul Russo
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.
Also Read: KCB Bank Kenya signs pact with giant Japanese lender, SMBC
How Women Entrepreneurs Will Benefit
30% of the credit line will be allocated to women entrepreneurs, aligning with the “2X Challenge.”
2X Challenge is an initiative by G7 development institutions. It is premised at promoting women’s economic empowerment.
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.
“I am delighted to sign 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,” said Françoise Bombard, Proparco CEO.
Today, KCB Bank is supporting 14 Sustainable Development Goals anchored on corporate social investments and driving sustainable business practices.
