KBA, KCIC Sign Deal Aimed at Advancing Green Financing in Kenya
The Kenya Bankers Association (KBA) and the Kenya Climate Innovation Centre (KCIC) have signed a Memorandum of Understanding aimed at advancing the green finance agenda in Kenya.
Through the agreement, the partners will seek to promote the growth of large and small enterprises by leveraging on climate change innovations and research.
In addition, KBA and KCIC will collaborate on resource mobilization, capacity building as well as policy advocacy towards promoting the implementation of green finance initiatives, besides designing enterprise support programs meant to address some of the barriers that both large enterprises and SMEs face while running their businesses.
Speaking on the partnership, KBA Chief Executive Officer Dr. Habil Olaka noted that the partners will collectively seek to position enterprises to drive social-economic transformation.
“I am happy to note that this MOU will provide a framework for cooperation towards enabling these businesses to scale and provide sustainable solutions to some of the social–economic problems that the world is facing today. I believe this partnership is a step towards enabling businesses to drive a wide-scale transformation,” he said.
Dr. Olaka further noted that SMEs are capable of being powerful agents of positive change if accorded the right environment to survive, adding that large enterprises also play an integral role in promoting a sustainable economy.
The collaboration will aim to enable the enterprises to formalize their business and be investment ready.
On his part, Kenya Climate Innovation Centre CEO Mr. Edward Mungai has underscored the importance of assisting enterprises to contribute to the green finance agenda. “With the effects of climate change upon us, this army of enterprises can collectively lead the transition to a green economy through climate-friendly projects,” he said.
KCIC Consulting Chief Executive Officer Prabhakar Vanam said that Green financing is crucial to the attainment of the Sustainable Development Goals (SDGs). “For the SDGs to be successful, it is important to set up a file for green projects and scale up the financing of investments that have environmental benefits,” he said.
He added, ‘’These enterprises also stand at a better chance of fueling the green drive through their innovative business models and technology. However, most enterprises still face various challenges such as capital access roadblocks, inadequate skills for executing a business plan, lack of information on intellectual property as well as infrastructure gaps and rigid policy frameworks.’’
With a mutual understanding of the importance of creating long-term value for the economy, society and the environment, both organizations will undertake joint capacity building for KBA member banks on the Sustainable Finance Initiative under the Association’s Sustainable Finance Imitative (SFI) program. Additionally, joint training initiatives on climate change and sustainability reporting will be undertaken.
Both KBA and KCIC Group are committed to address the challenges through the KBA Sustainable.
Finance Initiative (SFI) and Inuka Enterprise program, both of which are covered under the scope of the agreement.
Under the Inuka SME Program, over 4,000 MSMEs have interacted with the training. The partnership will provide a hybrid targeted approach to advance the green finance agenda in Kenya.