KENYA – KCB bank has been accredited by the United Nations Green Climate Fund as the first financial intermediary for the implementation of green financing in East Africa, paving way for the bank to receive funds from the Green Climate Fund (GCF) for on-lending to beneficiary institutions involved in the development of green-climate resilient investment assets or projects in Kenya, as well as in the region where the bank operates as the implementing entity.
The accreditation was announced during the 27th Green Climate Fund Board Meeting, in Songdo, South Korea.
The accreditation followed an extensive due diligence assessment, conducted by GCF since 2017 to ascertain the bank’s preparedness in managing climate change programmes.
“The bank is the first lender in Kenya and private sector entity to receive this accreditation, cementing the sustainability efforts within the group especially for portfolio re-imagining in the green lending space,” KCB Group Chief Executive Officer and Managing Director Joshua Oigara said.
“We are very proud of the efforts and investment we have put over the years to mainstream and entrench sustainable business that has earned us this recognition,” he added.
The CEO said the new development is a milestone for the bank and the country, as it opens up investment and development of the green economy through GCF support.
The lender has been accredited under the medium to large private sector category, therefore, capable of fronting projects of between US$50 million and US$250 million.
The Green Climate Fund is the world’s largest dedicated fund helping developing countries reduce their greenhouse gas emissions and enhance their ability to respond to climate change.
It was set up by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010.
GCF has a crucial role in serving the Paris Agreement, supporting the goal of keeping average global temperature rise well below 2 degrees.
It does this by channelling climate finance to developing countries, which have joined other nations in committing to climate action.