KCB branch along Mama Ngina Street in Nairobi. PHOTO | DENNIS ONSONGO | NMG By EDWARD MUNGAI
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Kenya was among the first seven countries whose institutions were accredited by the Green Climate Fund board for direct access of resources.
Commercial banks should recognise the fact that as the allocators of capital flow in the economy, they have a role to play in fuelling growth of eco-enterprises by designing green financial products as well as sustainable finance.
While the country has performed exceptionally well in greening its electricity generation mix through progressive and climate-smart policies, the same cannot be said of its transport; building sectors among other sectors.
Last week, South Korea-based Green Climate Fund (GCF) accredited a handful of institutions across the world, among them KCB.
As the first business institution to receive the accreditation in Kenya, KCB’s newly-earned credentials should inspire similar ones among other local private firms.
The move paves the way for the lender to receive GCF funding for on-lending to green and climate-friendly projects in Kenya as well as in the region where the bank has a footprint.
This arrangement will help fill existing climate finance gaps in the economy and enable development of projects at a mass scale to offset greenhouse gas emissions – the culprit behind global warming and climate change.
It’s part of GCF’s initiative to create synergies with businesses on the ground in efforts to advance climate mitigation and resilience projects faster and sustainably across the globe through green lending. Climate finance flow has over the years remained a trickle, but such partnerships offer promise of increased activity in the years to come.
Kenya was among the first seven countries whose institutions were accredited by the Green Climate Fund board for direct access of resources. KCB’s accreditation, therefore, rubberstamps not only the institution’s green finance profile but also that of the country as a potential regional leader in climate finance.
Plans are afoot to float the country’s debut sovereign green bond whose proceeds would finance eco-projects, while firms such as Acorn Holdings have already issued green bonds towards construction of student accommodation units in Nairobi.These developments bode well for Kenya’s stature as home to UN Environment Programme (Unep) headquarters.The accreditation came after the National Treasury nominated the lender for the credentials. KCB was then subjected to due-diligence assessment by GCF officials to ascertain its preparedness in managing climate change through green […]