KBA, KCIC Group Sign Collaboration Agreement On Advancing Green Financing In Kenya
Nairobi 23rd November 2020 - The Kenya Bankers Association (KBA) and the Kenya Climate Innovation Centre (KCIC) have today 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 the 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.
KCIC Consulting Chief Executive Officer Mr. 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."
On his part, Kenya Climate Innovation Centre CEO Mr. Edward Mungai 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.
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 Initiative (SFI) program.
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.
About the Kenya Bankers Association:
KBA (www.kba.co.ke) was founded on 16th July 1962. Today, KBA is the financial sector's leading advocacy group and banking industry umbrella body that represents total assets in excess of USD 40 billion. KBA has evolved and broadened its function to include advocacy on behalf of the banking industry, and championing financial sector development through strategic projects such as the launch of the industry's first P2P digital payments platform PesaLink. In line with the Government's policy on public-private partnerships, KBA and Central Bank of Kenya have implemented key projects such as modernization of the National Payments System through the Automated Clearing House, implementing the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. The KBA members are comprised of commercial banks and deposit taking microfinance banks. For more information, visit www.kba.co.ke.
About KCIC Group
KCIC Group is composed of Kenya Climate Innovation Center, Kenya Climate Ventures and KCIC Consulting. Kenya Climate Innovation Center supports innovative climate change solutions and accelerates the development of the clean-tech industry and sustainable development in Kenya through financing and technical business advisory. Kenya Climate Ventures provides funding and technical assistance that enable entrepreneurial organizations to develop more robust products or services and demonstrate its value to intended users and other stakeholders. KCIC Consulting offers business consulting for domestic and international organizations: Enterprise development, Management services, Training design, Impact evaluation, Research, Sustainability reporting and communication, Sustainability advisory and sustainable finance solutions. More about KCIC Group can be learnt from www.kcicgroup.org.