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 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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For further information, please contact Judith Sidi Odhiambo, Head of Corporate & Regulatory Affairs; email: jsodhiambo@kcbgroup.com;
About KCB Group PLC
KCB Group Plc is East Africa’s largest commercial Bank and was established in 1896. The Group is headquartered in Kenya, with the country serving as the lead market with two banking subsidiaries namely KCB Bank Kenya and National Bank of Kenya. Over the years, the Bank has grown and spread its wings into Tanzania, South Sudan, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo. Our subsidiaries KCB Bank Kenya and Trust Merchant Bank (TMB) also have representative offices in Ethiopia and Brussels respectively. Additionally, KCB Group owns KCB Bancassurance Intermediary Limited, KCB Investment Bank, KCB Asset Management, KCB Foundation and Kencom House Limited as non-banking businesses. Today KCB has the largest branch network in the region with 598 branches, 1,318 ATMs and over 33,393 merchants and agents offering banking services on a 24/7 basis in East Africa. This is complemented by mobile banking and internet banking services with 24-hour contact center services for our customers to get in touch with the Bank. KCB has a vast network of correspondent relationships totaling over 200 banks across the globe, and our customers are assured of a seamless facilitation of their international trade requirements wherever they are.
About Proparco
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector- based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners.
Proparco's new "Acting together for greater impact” Strategy 2023-2027 enables, strengthens and amplifies the different ways in which it works with its partners. To learn more: http://www.proparco.fr/en/strategy.
For more information: http://www.proparco.fr/en and @Proparco LinkedIn
