Entrepreneurs in Kenya planning to delve in the environmental sector will soon access affordable credit from the government, this after the Treasury announced that is has established the Kenya Green Bond Programme in an effort to unlock new sources of long-term investment for environmental projects, particularly for micro and small enterprises (SMEs).
Speaking on behalf of the Treasury Cabinet Secretary Henry Rotich at the Green Finance Conference recently held in Nairobi, Economic Secretary Dr Geoffrey Mwau said that the government is committed to engage the financial service sector, especially banks, to support SMEs in adopting green financing so that they can incorporate climate change in their business plans “The Public Finance Management Act, 2014, empowers the National Treasury to mobilize domestic and external resources for financing national and county budgetary requirements
‘We are banking on the SME sector which generates up to 70 per cent of employment in Kenya to achieve Sustainable Development Goals (SDGs) on climate change,’’ said Dr. Mwau
He added that the National Treasury has already put in place supportive tools and policies to help to enable businesses embrace green economy, stating that in 2013, it established the Carbon Credit/Climate Finance Unit to coordinate and mobilize various types of climate finances such as, the Green Climate Fund and the Africa Climate Change Fund
‘’It is such measures that has seen the country’s energy sector regarded as the greenest in the region, with more than 70 per cent of the energy being sourced from sustainable sources such as geothermal, wind, solar, biogas and hydro- power’’
Recently, stakeholders in the financial sector led by Kenya Bankers Association, Nairobi Securities Exchange, and International Finance Corporation (IFC) launched the Kenya Green Bond Programme to help SMEs raise finances from both domestic and external sources for sustainability-driven investments in an innovative way