KENYA: Co-Operative Bank Secures $7.5m Guarantee For Green SME Finance

Posted on : Thursday , 21st October 2021

The African Guarantee Fund (AGF) has signed a loan portfolio guarantee agreement with the Co-operative Bank of Kenya (CBK) for $7.5 million. The guarantee facility will enable CBK to finance green small and medium-sized enterprises (SMEs), particularly in the supply of solar photovoltaic energy.

 

The Co-operative Bank of Kenya, a Nairobi-based financial institution, is launching a new range of bank loans for Kenyan small and medium-sized enterprises (SMEs) operating in the energy sector. It includes up-selling of business solutions, counterparty integration opportunities, growth in trade commission, and integration of new micro, small and medium enterprise (MSME) package accounts.

 

The launch of these financing options for Kenyan SMEs involved in energy was made possible by the USD 7.5 million guarantee facility provided to Co-operative Bank of Kenya by the African Guarantee Fund (AGF). “Banks in Kenya urgently need risk mitigation instruments to support their SME lending activities. However, we must aim for economic growth without degrading the environment. Sustainability improves the quality of our lives, protects our ecosystem and preserves natural resources for future generations. Our partnership with the Co-operative bank today reflects our commitment to increase financing for green businesses,” says Franck Adjagba, AGF’s Director of Business Development.