NAIROBI, Kenya, Sept 22 – Cooperative Bank of Kenya has partnered with the Africa Guarantee Fund (AGF) to provide financing amounting to Shs 750 million to Kenyan Micro and Small enterprises that are involved in green energy and solar installation projects.
The lender, through a statement, noted that the guarantee facility will enable the bank to advance green financing as well as strengthen its commitment to MSMEs.
Jacquelyne Waithaka, the bank’s Director of corporate and institutional banking, said the finances will help businesses that face challenges in obtaining funds due to the use of securities that cannot be easily liquated in case of loan defaults.
“Solar panels and inverters, for instance, are not preferred security because they cannot be easily liquidated in case of loan default. Co-op Bank’s partnership with AGF has created an instrument that overcomes this challenge, thereby giving the bank considerable ability to finance solar energy programs effectively,” she said.
MSMEs in the manufacturing, light industry, and agro-processing sectors are among the key beneficiaries.
She said the finances are expected to reduce the energy costs of doing business thereby making them more competitive.
” For the environment, successful uptake of the scheme will lead to the reduction in carbon emissions. It is also expected that as the prices of solar technologies continue to come down and AGF continues to develop other products, a greater number of Kenyans will afford renewable energy products and services,” she added.
Franck Adjagbare, AGF Group Director of Business Development said the partnership is expected to have a large positive impact on MSMEs further reaffirming the firm’s commitment to promoting sustainable economic growth in the country
“We should 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 Co-op Bank today reflects our commitment to increasing financing of businesses in the green sector.” he added.
