Chase Bank Kenya in conjunction with Agence Française de Development (AFD) have entered into a credit line deal of KES 1.12 billion (USD 10m) to finance green energy projects in Kenya.In the agreement, AFD has granted Chase Bank a 12 year loan facility for ongoing lending business investing in renewable energy technology projects comprising of small hydro, biomass, biogas, solar and geothermal projects coupled with energy efficiency measures.
The funds to be available at competitive rates will be issued to eligible customers through all Chase Bank branches countrywide. Speaking at the signing ceremony Chase Bank CEO, Paul Njaga said “This concept of providing an affordable credit line together with a technical assistance component has proven to be highly successful in changing how the energy efficiency (EE) and renewable energy (RE) markets operate in East Africa. This is because there is clear commitment towards developing low carbon, clean energy sources at levels which are guided not just by government policy but also community and business needs at various levels of the economy.”
In East Africa demand for energy has been rising steadily over the years characterized by an intensive use of biomass fuel (wood, charcoal). In Kenya alone, this demand represents 68 per cent of the total primary energy requirements, equivalent to 12 million tonnes of oil (TOE) per year. The figure stands at 94 per cent in Uganda and 90 per cent in Tanzania, a factor that has resulted in the massive depletion of natural resources in the three countries.
AFD is a key partner in the energy sector and involves all projects sub-sectors, like transmission, generation, distribution and demand-side management. The new programme totals up its commitment in the energy sector to EUR 670m.AFD credit line is the first in a series of relationship with five Kenyan banks as it plans to extend this type of financial scheme to Tanzania and Uganda.
Recently, Chase Bank partnered with Safaricom to launch a mobile application referred to as Mobile2bank. This is in efforts to increase efficiency of business by aggregating all their banking services and making them accessible through a mobile phone. It will also allow businesses to make payments and collections directly to their bank accounts whilst, enabling customers to access loans and move funds form Lipa Na Mpesa till to another faster and easier.