Small traders and farmers set for Sh12.5b green funding

KCB Group CEO Paul Russo. [Wilberforce Okwiri, Standard]

Small businesses and farmers in Kenya are set to benefit from Sh12.67 billion green financing by KCB Bank, following approval.

The financing aims to accelerate green projects for Kenya's most vulnerable communities, under the Green Climate Fund (GCF).

The lender states that the funding also targets ensuring that small, micro, and medium-sized enterprises and farmers can build resilience, improve productivity, and transition to low-carbon practices.

The Sh12.67 billion funding includes concessional loans, guarantees, and grants under the Climate Smart Technology (CST) programme.

The approval comes at a time when Kenya continues to face acute vulnerability to climate change, with over 80 per cent of its landmass classified as arid and semi-arid lands (ASALs).

It is estimated that the country loses three per cent of its GDP due to frequent climate hazards. About 60 per cent of the financing will focus on adaptation, particularly climate-resilient agriculture and water management technologies, while 40 per cent will support mitigation technologies such as renewable energy and energy efficiency.

Furthermore, through this facility, KCB Bank Kenya will deploy financing solutions, including flexible credit products, mixed finance structures, and digital lending platforms, to reach underserved populations at scale.

This facility will support value-chain and gender-inclusive interventions, such as the adoption of solar-powered and clean cooking technologies, climate-smart agriculture, waste management, circular economy initiatives, and improvements in energy efficiency.

According to Paul Russo, KCB Group CEO, this approval is a step towards scaling climate financing. "By targeting MSMEs and smallholder farmers, we are ensuring that no one is left behind in the transition to a climate-resilient future," Russo said.