KCB Group Kenya is leading the charge in climate financing by pursuing a KSh 15.2 billion ($118.25 million) loan from the Green Climate Fund (GCF). The funding will support small and medium enterprises (SMEs) focused on climate-friendly solutions, promoting sustainable economic growth while addressing critical environmental challenges.

The bank has already secured an initial KSh 69 million ($554,000) through the GCF’s Project Preparatory Facility. These funds will be used to conduct feasibility studies, assess climate risks, and create an operational framework ahead of the larger tranche expected in 2025.

The agreement was finalized during the 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC). This marks a significant achievement for KCB, which became the first financial intermediary in the region to be accredited by the GCF in 2020.

Speaking at the event, KCB Group CEO Paul Russo emphasized the bank’s commitment to fostering sustainability through innovation.

“This milestone represents a significant step forward. By empowering our MSMEs with climate-smart technologies, we are taking decisive action to tackle environmental jobs while fostering local economic growth and creating sustainable jobs within our communities. We believe by investing in sustainable practices, we can build a brighter, more resilient future for all.” he said.

The funds from the Project Preparatory Facility will be instrumental in conducting program feasibility studies, assessing vulnerabilities to climate risks, and developing a comprehensive operations manual for implementing climate-smart technologies.

KCB’s participation at COP29, held in Baku, Azerbaijan, from 11 to 22 November 2024, included a key role in the 5th Africa Adaptation Acceleration Program (AAAP) Partnership Forum.

Hosted by the African Development Bank Group, the forum highlighted the importance of scaling up access to climate-smart digital technologies and data-driven agricultural and financial services for 30 million African farmers. This initiative aims to boost agricultural productivity by 70% using nature-based solutions.

Established in 2010 by 194 countries under the United Nations Framework Convention on Climate Change (UNFCCC), the GCF is the world’s largest climate financing mechanism. It helps developing nations limit greenhouse gas emissions, adapt to climate change, and transition to low-emission, climate-resilient economies.

The GCF plays a pivotal role in achieving the goals of the 2015 Paris Agreement, including limiting global temperature rise to below 2°C. Advanced economies have committed substantial financial resources to the fund, making it a critical tool in addressing the mitigation and adaptation needs of vulnerable nations.