KCB Bank Kenya has tapped a $95 million (Sh12.4 billion) loan from Proparco, and European Financing Partners (EFP), for on-lending to women-led entities and green businesses.
The lender, part of KCB Group, said on Thursday it signed the credit line on the sidelines of the 2024 Africa CEO Forum in Kigali, Rwanda.
Proparco, a French development finance institution that is part of Agence Française de Développement (AFD) Group, contributed $35 million (Sh4.59 billion), while EFP committed $60 million (Sh7.86 billion).
KCB said it will use the funds for onward lending to projects that prioritise environmental sustainability and high social impact, particularly in the health and education sectors.
The lender also committed to channel at least 30 percent or Sh3.73 billion of the money to lend to women entrepreneurs.
“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,” said Paul Russo, chief executive at KCB Group.
The loan is the latest involving Proparco, which in March this year lent NCBA Group a $50 million (Sh6.55 billion) loan for on-lending to small and medium-sized enterprises (SMEs) and green businesses.
"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,” said Françoise Lombard, chief executive at Proparco.
KCB Group borrowings hit Sh88.66 billion in the financial year ended December 2023, up from Sh63.61 billion in the previous financial year. Some of its financiers are EIB, International Finance Corporation and Global Access Fund.
