I&M Bank has secured a USD 30 million green lending facility backed by a guarantee from Sweden’s International Development Cooperation Agency (Sida), in what the bank is calling a significant step in expanding climate-aligned financing across Kenya.
The partnership, formalised at a signing ceremony in Nairobi on Wednesday, is structured around a USD 15 million guarantee from Sida, with a 50 percent risk-sharing arrangement over eight years. The structure is designed to give I&M Bank the confidence to extend credit to businesses in green sectors that might otherwise be considered too risky under conventional lending terms.
“We are not simply making commitments to sustainability, we are backing those commitments with real capital, a credible international partner, and a rigorous framework aligned to Kenya’s own regulatory architecture,” said Shameer Patel, Director of Retail and Business Banking at I&M Bank. “The Sida guarantee allows us to go further and faster in financing the businesses that will build Kenya’s sustainable economy.”
The facility will fund projects across a range of sectors central to Kenya’s low-carbon transition, including renewable energy, energy efficiency, clean transportation, green building, circular economy initiatives, sustainable water management, and responsible land use.
Loans issued under the partnership will be structured in line with the Green Loan Principles developed by the International Capital Market Association, covering standards on use of proceeds, project selection, funds management, and impact reporting.
For Sida, the deal represents its first Green Transition Guarantee in Kenya, an instrument intended to crowd in private capital for projects linked to the country’s commitments under the Paris Agreement.
“This partnership demonstrates how public and private actors can work together to translate Kenya’s climate ambitions into impactful projects,” said Marie Ottosson, Head of Development Cooperation at the Embassy of Sweden in Kenya. “The guarantee ensures that climate-aligned investments receive the financing needed to strengthen resilience, foster inclusive economic growth, and achieve measurable environmental and social impact.”
The announcement comes as Kenya’s green finance framework continues to mature. The Kenya Green Finance Taxonomy, which provides a national reference for identifying climate-compatible activities, has helped improve transparency and guide capital allocation across the sector.
The deal falls under I&M Bank’s broader sustainability agenda, embedded within its iMara 3.0 group strategy.
