Kenyan banks move to close green financing gap as GGGI, KBA seal five-year deal

Jukwaa

📻 Breaking It Down

The Global Green Growth Institute (GGGI) and the Kenya Bankers Association (KBA) on Thursday signed a Memorandum of Understanding (MoU) to strengthen sustainable finance, green investment and inclusive green growth in Kenya.

The partnership seeks to address a persistent financing gap in which businesses struggle to secure funding for green projects while lenders say they lack sufficiently bankable opportunities.

“For too long, entrepreneurs have said banks are not lending, while banks have said there are not enough bankable green projects. This partnership is about closing that gap,” said Nagnouma Kone, GGGI’s Manager for Africa Strategy and Partnerships and Head of Kenya Office.

📌 What You Need to Know

“We are bringing together SMEs, financial institutions, and public sector actors to move beyond discussion and create real transactions that accelerate Kenya’s green transition.”

The agreement was signed by Kone and KBA Chief Executive Officer Raimond Molenje during the launch of the International Climate Initiative (IKI)-funded SYMBIOTIC Project in Nairobi.

The collaboration comes as Kenya seeks to implement its biodiversity commitments while increasing private-sector participation in financing sustainable development.

GGGI said small and medium-sized enterprises, particularly women-led businesses, continue to face difficulties accessing finance because of perceived risks, while commercial lenders frequently cite a shortage of bankable green projects.

The partnership will therefore focus on helping businesses meet bankability requirements while working with financial institutions to develop financing products suited to green and nature-positive investments.

It will also explore mechanisms to de-risk green lending and expand the use of instruments such as sustainability-linked bonds and green loans to channel more private capital into climate and biodiversity projects.

📰 Source: Capital FM Kenya

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