I&M Bank has signed a partnership with Swedish International Development Cooperation Agency (Sida) to unlock up to USD 30 million in green transition financing, targeting sustainable and climate-aligned projects across Kenya.
The agreement is anchored on a USD 15 million guarantee from Sida, structured over eight years with a 50 per cent risk-sharing mechanism. The facility is expected to significantly scale up I&M Bank’s lending capacity to businesses operating in eligible green sectors.
Risk-Sharing Model to Unlock Green Capital
The partnership introduces a Green Finance Risk-Sharing Guarantee that reduces lending risks for the bank while encouraging increased financing to environmentally sustainable projects.
By mitigating credit risk, Sida’s guarantee enables I&M Bank to extend more financing to enterprises engaged in renewable energy, energy efficiency, and other climate-positive investments, areas often constrained by limited access to capital.
Driving Kenya’s Green Transition Agenda
Additionally, the financing facility will channel funds into critical sectors, including renewable energy, clean transportation, green building renovations, circular economy initiatives, and sustainable water and land resource management.
According to I&M Bank, the initiative aligns with its sustainability agenda under the iMara 3.0 strategy, reinforcing its commitment to climate resilience, low-carbon growth, and long-term economic value creation.
Leadership Speaks on Strategic Impact
Shameer Patel, Director of Retail & Business Banking at I&M Bank, described the deal as a milestone for both the bank and Kenya’s sustainable finance landscape.
“This partnership is a defining moment for I&M Bank and for Kenya’s green finance story. We are backing our sustainability commitments with real capital, a credible international partner, and a rigorous framework aligned to Kenya’s regulatory architecture,” he said.
Marie Ottosson, Head of Development Cooperation at the Embassy of Sweden in Kenya, emphasized the role of the partnership in mobilizing private capital for climate action.
“Through Sida, Sweden is proud to support Kenya’s green transition. This guarantee reduces financial risk and helps channel investment into projects that contribute to Kenya’s Nationally Determined Contributions under the Paris Agreement,” she noted.
Adoption of Global Green Lending Standards
In structuring loans under the facility, I&M Bank will apply the Green Loan Principles developed by the International Capital Market Association. These standards ensure transparency and accountability in the use of funds, project evaluation, and reporting.
This approach is expected to enhance investor confidence while ensuring measurable environmental and social impact.
Strengthening Kenya’s Green Finance Ecosystem
The partnership comes amid growing momentum in Kenya’s green finance sector, supported by frameworks such as the Kenya Green Finance Taxonomy, which provides guidance on identifying climate-aligned investments.
By expanding its green lending portfolio, I&M Bank is positioning itself as a key player in financing Kenya’s sustainable development, supporting businesses that are shaping a resilient and low-carbon economy.
Public-Private Collaboration Key to Climate Goals
The collaboration between I&M Bank and Sida highlights the importance of public-private partnerships in advancing climate finance.
By combining international development support with private sector lending capacity, the initiative demonstrates a scalable model for translating Kenya’s climate ambitions into tangible, high-impact projects.
