Below is the speech shared by our CEO, Paul Njaga at the signing Ceremony of the Agence Française de Développement (AFD) and Chase Bank .
“Today we are gathered here to witness a historical signing agreement between Agence Française de Développement (AFD) and Chase Bank Kenya. We are inking a credit line deal valued at 10 Million Euros, which is approximately Ksh 1.12 Billion to finance Green Energy Projects in Kenya.
This credit line is now available to all our clients who wish to invest in renewable energy technologies projects like small and micro hydro, biomass, biogas, solar, and geothermal as well as energy efficiency measures.
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 the 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 is 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.
In the recent past there has been a clear shift in how we Kenyans produce and consume our energy as we have slowly but steadily become on of the world’s fastest growing markets for solar, wind and mini hydro solutions. We at Chase Bank want to keep that momentum going while ensuring that we help conserve our environment.
Allow me to reiterate the fact that at Chase Bank, we are fully committed to supporting you, the SME customer achieve what matters to you most. We are constantly seeking partnerships with key market players to ensure this happens. Earlier this year, we entered into a partnership with Rabo Bank of the Netherlands that will provide technical advice and funding to farmers in Kenya.
Ladies and gentlemen, during this July’s Global Entrepreneurship Summit, we committed KES 60B for women and youth entrepreneurs, as we believe that this segment of society is the future.
Two weeks ago, we entered into a partnership with International Finance Corporation (IFC) and the 10,000 women initiative by Goldman Sachs. Chase Bank received a credit line through the Women Entrepreneurs Opportunity Facility (WEOF) to disburse 2.5 billion Kenya Shillings to Kenyan women entrepreneurs.
To date, Chase Bank Kenya has already onward lent about KES 20B to women-owned SMEs, most of which have been through concessional lending or collateral-free loans.
We at Chase bank will continue to innovate around the needs of our customers and are indeed a bank that is here today, and here for the future, with shared prosperity.
Chase Bank is committed to its core SME clients and will continue to think of ways to make banking for them more fulfilling. The signing of this deal is just one large step in that direction.”