Since 2019, I&M Bank has disbursed over KES 2 billion in loans to Micro, Small, and Medium Enterprises (MSMEs) through its green energy funding scheme, accounting for more than 33% of the KES 6 billion reserves set aside for climate action projects.
Following this three-year uptake, the lender has committed to injecting an additional KES 6 billion into the kitty to finance renewable energy projects with a greater emphasis on green transportation.
Furthermore, the bank will offer to finance the replacement of inefficient energy-saving equipment in industries, homes, and agricultural sites in Kenya and throughout 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 created as part of I&M’s Environmental, Social, and Governance (ESG) initiatives to reduce firms’ carbon footprint.
Other lenders, including the bank, have agreed to sustainable lending policies severely limiting their participation in coal energy ventures.
Banks such as StanChart, KCB, and Equity have made similar moves to prevent clients from pursuing environmentally friendly projects in an effort to combat climate change.
Green financing has grown in recent years as both lenders and borrowers have become more aware of their obligations to meet ESG standards, which are now a key consideration for investors looking to invest in these companies.
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