Cooperative Bank of Kenya has received Sh1.1 billion ($10 million) loan from Luxembourg-based impact investment fund for on-lending to agribusinesses.
The lender yesterday said it has received the subordinated loan from eco.business Fund and will extend the same to sustainable agribusinesses, such as those in the coffee, tea, and horticulture.
The facility marks the first investment in Kenya for eco.business Fund, which specialises in promoting use of natural resources, and mitigating and adapting to climate change.
Co-op Bank chief executive Gideon Muriuki said in a statement that the loan will provide much-needed financing for agricultural businesses, especially in light of the Covid-19 hardships facing many businesses.
“This new partnership with eco.business Fund that makes available $10 million for on-lending to farmers is a winner on many fronts,” Mr Muriuki said.
“It provides financing that is structured to suit the financing cycles of agriculture, and also comes with the support mechanisms to assist farmers to make a successful pivot towards sustainable, climate-smart agriculture.”
Chairperson of the board of directors at eco.business Fund Jens Mackensen said the deal seeks to promote green finance in the country.