CBA signs Ksh 1.12 billion Green Energy deal

CBA signs Ksh 1.12 billion Green Energy deal

The Commercial Bank of Africa (CBA) on Monday signed a credit line with the Agence Française de Dévelopement (AFD) valued at 10 million Euros (approximately Ksh 1.12 billion) to finance Green Energy Projects in the country.

The French Ambassador to Kenya Rémi Maréchaux, and CBA Managing Director Isaac Awuondo, Director of AFD East Africa Regional Office Mr Boudot said the ultimate goal of the programme is to ensure affordable and accessible power.

The credit line has been availed to CBA for onward lending to businesses that wish to invest in renewable energy technologies projects (small hydro, biomass, biogas, solar, geothermal) as well as energy efficiency measures.

This is a first step and the committed amount can be increased based on Kenyans appetite to finance Green Energy Projects in Kenya.

“Business owners are becoming increasingly aware of their responsibility in running sustainable operations. The challenge for them arises when they consider the kind of investment they have to make to honour this responsibility and this partnership will make it easier for them to achieve their ambition for sustainable energy solutions,” said Mr Awuondo.

He said the technical and financial offer is particularly important to bringing additional solutions to achieve the diversification of energy resources in the East African region.

“The technical and financial offer will help the region to transition towards sustainable energy solutions that are technically, economically and financially viable.”

The Green Energy Line of Credit is one of the components of the large regional programme called SUNREF (Sustainable Use of Natural Resources and Energy Finance) which also promotes financing of renewable energy and energy efficiency projects in East Africa through local banking system.

The AFD credit line is part of Phase II of the programme and CBA is the second bank after Chase Bank to participate in the relationship expected to incorporate five Kenyan banks. AFD will also develop this financial scheme in Tanzania and Uganda.

France, through AFD, is Kenya’s key partner in the energy sector and helps in the generation, transmission, distribution and management of energy demands.

Diana Omondi