Paul Arithi 
Sarit S. Raja-Shah, Group Executive Director of I&M Bank, and Marie Ottosson, Head of Development Cooperation for Kenya at the Swedish International Development Cooperation Agency (SIDA), lead the I&M Bank & SIDA green financing deal signing at 1 Park, Nairobi formalizing a strategic partnership focused on sustainable development, climate-conscious investment, and long-term economic impact.
- I&M Bank and Sida’s USD 30 Million Partnership Set to Expand Green Lending in Kenya;
I&M Bank Limited, a leading Tier 1 commercial bank in East Africa, announced a landmark Green Finance Risk-Sharing Guarantee partnership with the Swedish International Development Cooperation Agency (Sida), unlocking a dedicated green transition lending portfolio of up to USD 30 million to finance sustainable and climate aligned projects across Kenya.
The partnership, formalized at a signing ceremony in Nairobi, centres on a USD 15 million guarantee from Sida, with a coverage of eight years and a 50 percent risk-sharing structure, enabling I&M Bank to significantly expand its green transition lending capacity to businesses operating in eligible green sectors.
The collaboration is a key enabler of I&M Bank’s Green Finance agenda and directly supports the I&M Group Sustainability Strategy under iMara 3.0.
It also reinforces the Bank’s commitment to taking practical action in advancing sustainable finance by increasing the flow of capital into sectors that support climate resilience, low carbon growth, and long-term economic value creation.
“This partnership is a defining moment for I&M Bank and for Kenya’s green finance story.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.
The Sida guarantee allows us to go further and faster in financing the businesses that will build Kenya’s sustainable economy.”
The facility will support lending into sectors central to Kenya’s green transition, including renewable energy, energy efficiency, clean transportation, green building renovations, circular economy and eco-efficient products and processes, sustainable water and wastewater management, and sustainable management of natural resources and land use.
On her part, Marie Ottosson, Head of Development Cooperation, Embassy of Sweden in Kenya, stated, “Sweden, through Sida, is happy to support Kenya’s sustainable development and green transition through our partnership with I&M Bank Kenya.
This first Sida Green Transition Guarantee reduces financial risk for the Bank, helping to mobilize private capital for projects that contribute to Kenya’s Nationally Determined Contributions (NDCs) under the Paris Agreement.”
In structuring loans under the partnership, I&M Bank will voluntarily apply the Green Loan Principles developed by the International Capital Market Association, including standards around use of proceeds, project evaluation and selection, management of proceeds, and reporting.
“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. This partnership demonstrates how public and private actors can work together to translate Kenya’s climate ambitions into impactful projects.” Marie added.
The partnership comes at a time when green finance is becoming increasingly important to Kenya’s financial sector. The Kenya Green Finance Taxonomy has created a stronger national reference point for identifying climate aligned activities, improving transparency, and supporting more consistent green capital allocation.
By expanding its green lending capacity through this partnership, I&M Bank is reinforcing its role as a reliable, leading financial institution supporting clients to invest in the sectors that will shape Kenya’s sustainable future.
