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European Investment Bank

Climate love

European investment bank in deal with Kenya's exchequer to facilitate access to climate related investments

The Central Bank of Kenya (CBK) has entered into an agreement with the European Investment Bank (EIB) to enable Kenyan commercial banks to access climate-related investments. The two-year technical assistance scheme is the first of its kind to be implemented in East Africa under the IEB’s Greening Financial Systems Programme, which is financed by the German government through the dedicated International Climate Initiative Fund (IKI Fund). It will serve as a model for mobilizing climate finance by tackling barriers that hold back engagement by commercial banks and will enable CBK to incorporate climate risk into the Kenyan regulatory framework. EIB Vice President Thomas Östros said that greater efforts are being made to understand the barriers holding back green financing in Kenya. “This new technical best practice partnership with the Central Bank of Kenya builds on the European Investment Bank’s long-standing partnership with Kenyan financial institutions to increase the impact of climate finance and unlock investment that better protects infrastructure and business from climate change,” said Östros. According to the EIB’s 2023 Finance in Africa Report, the increasing prevalence of climate risks on balance sheets has made climate an important part of the risk appraisal process for both new loans and existing portfolios. The latest EIB survey found that 59 percent of banks in Africa have a climate change strategy, and another 22 percent plan to introduce one. “Towards this end, CBK issued Guidance on Climate-Related Risk Management in October 2021, to commercial banks The Guidance was intended to facilitate banks in incorporating climate-risk related considerations in their governance, strategy, risk management and disclosures frameworks. Considerable progress has been made by banks in implementing the Guidance, but more remains to be done,’’ CBK Governor Kamau Thugge said. https://www.capitalfm.co.ke/business/2023/12/cbk-european-investment-bank-in-a-deal-to-unlock-climate-finance/?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=cbk-european-investment-bank-in-a-deal-to-unlock-climate-finance

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  • CHRIS NGATIA

    17 w

    Great seeing financial institution aiding in climate advocation

    5
    • winnie nguru

      17 w

      Its so good to see this being done in our country now

      2
      • George Kariuki

        17 w

        This technical assistance program will be a valuable step in mobilizing the necessary resources.

        5
        • Rotich Kim

          17 w

          This parternship is good it will extend the fight for climate justice and eliminating fossils and encourage the use of new technology

          3
          • Gorffly mokua

            17 w

            This will be a great initiative which will promote sustainability!

            3
            • walter lungayi

              17 w

              This deal between the European investment bank and Kenya's exchequer is a positive step towards facilitating access to climate-related investments, which is crucial for addressing environmental challenges in Kenya.

              3
              • Joseph Githinji

                17 w

                This is an idea whose time is now, this is a great way to support climate action since climate finance has been a great enemy to climate excellence.

                5
                • Princess

                  17 w

                  This will truly help tackling barriers that hold back engagement by commercial banks.

                  4
                  • Joseph Githinji

                    17 w

                    @princess_nel_268 sure, this is a significant partnership that is going to foster a better climate and a sustainable environment.

                    2
                  • johnte ndeto

                    18 w

                    This is so encouraging of financial institutions coming together for the good of climate

                    15
                    • Joseph Githinji

                      17 w

                      @johnte_ndeto true, climate financing is the backbone to climate action.

                      4
                    • Rukia Ahmed Abdi

                      18 w

                      This initiative, under the EIB's Greening Financial Systems Programme, aims to address barriers hindering engagement by commercial banks and integrate climate risk into Kenya's regulatory framework. The partnership signals a concerted effort to enhance the impact of climate finance, protect infrastructure, and foster sustainable investment, marking a significant step in unlocking climate finance in East Africa.

                      15
                      • Joseph Githinji

                        17 w

                        @rukia_ahmed_abdi This will go a long way in creating a sustainable environment now and in the future.

                        3
                      Welcome, let's solve the climate crisis together
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