I&M Bank Secures Multimillion Deal to Fund Green Projects in Kenya

I&M Bank Kenya has entered into a partnership with the Swedish International Development Cooperation Agency (Sida) to support funding for environmentally friendly projects across the country. The deal includes a $30 million risk-sharing arrangement, where Sida will provide a $15 million guarantee over eight years to help cover possible loan defaults. In return, I&M Bank will pay a fee for the support.

The programme will focus on projects such as renewable energy, energy saving solutions, clean transport, green buildings, water and waste management, and sustainable use of natural resources. This means businesses and developers working on such projects will find it easier to access loans, as part of the risk will be shared between the bank and Sida.

Green projects often struggle to get funding because banks fear losses, especially in new or less familiar sectors. By stepping in to share the risk, Sida is helping to unlock more financing for these projects.

I&M Bank said the partnership shows its commitment to supporting sustainability with real funding, while Sweden said the goal is to attract more private investment into projects that support Kenya’s climate goals.

The move comes at a time when green finance is growing in Kenya, with more banks and companies looking for ways to invest in projects that reduce pollution and use resources more efficiently. Overall, the deal is expected to increase funding for climate-friendly projects and support Kenya’s shift towards a greener economy.