, NAIROBI, Kenya Nov 3 – Chase Bank Kenya and Agence Française de Développement (AFD) have signed a credit line worth Sh1.12 billion to finance green energy projects in Kenya.
The credit will see Chase Bank Kenya lend to businesses that are investing in renewable energy technologies projects (small hydro, biomass, biogas, solar, geothermal) as well as energy efficiency measures.
Chase Bank Chief Executive Paul Njaga says the funds will be available at competitive rates to eligible customers investing in renewable energy and energy efficiency projects through all Chase Bank branches.
“This is a 12-year facility and will therefore address long term funding requirements of energy projects” said Njaga.
The credit line also comes with a technical assistance program that will be managed by Kenya Association of Manufacturers (KAM).
This will help the bank improve its knowledge on lending to and involvement in sustainable energy projects.
In addition, the Kenya Association of Manufactures will assist the project’s sponsors on feasibility studies and technical support.
“This technical and financial offer is therefore particularly important to bring additional solutions to achieve the diversification of energy resources in the East African region and help the region to transition towards sustainable energy solutions that are technically, economically and financially viable” stated AFD Director East Africa Regional Office Yves Boudot.
France, through AFD, is a key partner of Kenya in the energy sector and intervenes in all sub-sectors that include generation, transmission, distribution and demand-side management.
Over the past decade, the Volume of AFDs financial itself has reached over euro 1.12bn mainly in the energy sector.
During the Global Entrepreneurship summit, Chase Bank announced plans to commit over Sh60bn over the next three years to lend entrepreneurs in the Small and Medium Enterprises sector in a bid to give access to financing to entrepreneurs.
The bank has also partnered with Stima Sacco in a bid to empower fast growing Small and Medium Enterprises (SMEs) through providing co-branded opportunities.
The first phase of the rollout will provide an array of services to Stima Sacco customers, which includes advanced payment guarantee, bid bonds and performance bonds.