Kenya’s Co-operative Bank (CBK) acquires a $7.5m loan for green SMEs

The Nairobi-based Co-operative Bank of Kenya (CBK) has rolled out a new line of solar energy bank loans for Kenyan small and medium-sized businesses (SMEs).

The package accounts will include sales promotion business solutions, competitor integration prospects, commercial revenue expansion, and the incorporation of new micro, small, and medium enterprise (MSME). The guarantee facility will allow CBK to fund green small and medium-sized enterprises (SMEs), primarily in the solar PV industry.

The African Guarantee Fund supplied CBK with a $7.5 million guarantee facility, which enabled the establishment of these financing solutions for Kenyan SMEs interested in solar energy. ( AGF)

Franck Adjagba, the AGF’s Director of Business Development, said the AGF’s current cooperation with the Co-operative Bank “underscores our commitment to improving finance for green firms.”

Kenyan banks critically need risk reduction strategies to support their SME lending operations, he adds: ” However, we must strive for economic prosperity that does not degrade the environment. Sustainability improves our quality of life while simultaneously protecting the environment and natural resources for future generations.”

Kenya, East Africa’s largest economy, will be able to achieve its energy goals thanks to CBK’s new financing packages for green SMEs and the downward trend in international solar pricing. Growing requirements and technology advancements, according to the International Renewable Energy Agency (Irena), have contributed to a significant reduction in the cost of solar photovoltaic systems over time.