Kenyan banking tycoon Suresh Bhagwanji Shah’s I&M Bank Group has disbursed over Ksh2 billion ($16.2 million) in loans to micro, small, and medium enterprises (MSMEs) in three years through its green energy funding scheme.
I&M Bank Group, a leading financial services provider active in Kenya, Tanzania, Rwanda, and Mauritius, was founded by Shah (one of Kenya’s richest businessmen) in 1974.
The Kenyan tycoon, who owns a 10.98-percent stake in the leading financial services provider corresponding to 178,514,362 ordinary shares, is credited with turning the group into one of East Africa’s leading banking organizations.
I&M’s green energy funding scheme, which was established as part of the bank’s Environmental, Social, and Governance (ESG) initiatives, has seen a 33 percent uptake of the Ksh6-billion ($48.7 million) reserve set aside for climate action projects since 2019.
In response to the strong uptake of its green loans, I&M has committed to pumping an additional $48.7 million into the scheme to finance renewable energy projects, with a particular focus on green transportation. The bank will also finance the replacement of energy-inefficient equipment in industries, homes, and agricultural sites in Kenya and the surrounding region.
Kihara Maina, the CEO of I&M Bank, said it will continue to pay close attention to market demands and innovate new sustainable products that meet the needs of its customers.
“As part of our ESG goals and commitment to the green banking agenda, I&M Bank wishes to apply innovative and cost-efficient financing structures across the entire value chain of renewable energy businesses,” Maina said.
Shares in I&M Bank Group have decreased by more than 20 percent since the start of the year, resulting in a $9.1-million loss for Shah, who is one of the richest investors on the Nairobi Securities Exchange.
The bank’s commitment to supporting MSMEs through the bank’s green loans demonstrates its continued dedication to responsible and sustainable business practices. The green energy scheme is just one aspect of its efforts to cut the carbon footprint of firms in the region.
