Kihara Maina, CEO, I&M Bank Kenya. PHOTO | DIANA NGILA | NMG
I&M Bank has disbursed over Sh2 billion in loans to Micro, Small and Medium Enterprises (MSMEs) through its green energy funding scheme, translating into over 33 per cent uptake of the Sh6 billion reserve set aside for climate action projects since 2019.
Following this uptake in a span of three years, the lender has committed to pumping an additional Sh6 billion into the kitty to finance renewable energy projects placing more emphasis on green transportation.
Additionally, the bank will offer to finance the replacement of energy-inefficient equipment in industries, homes and agricultural sites both in Kenya and across the region.
“As part of our ESG goals and commitment to the green banking agenda, I&M Bank wishes to apply innovative and cost-efficient financing structures across the entire value chain of renewable energy businesses. We will continue to pay keen attention to market demands and innovate new sustainable products that meet the needs of our customers,” said I&M Bank CEO, Kihara Maina.
The green energy financing scheme was established as part of I&M’s Environmental, Social and Governance (ESG) initiatives aimed at lowering the carbon footprint of firms.
READ: Kihara Maina takes over as I&M Bank's regional boss
The bank is one among other lenders that have also agreed to sustainable lending policies that severely restrict their participation in coal energy ventures.
Banks such as StanChart, KCB and Equity have made similar moves to block financing to clients not undertaking environment-friendly projects in an effort to counter climate change.
READ: Crown Paints inks customer financing deal with I&M Bank
Green financing has grown in recent years as both lenders and borrowers become more aware of their obligation to meet ESG standards which are now a key consideration for investors looking to pump in capital into these firms.
→ kmwangi@ke.nationmedia.com
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