Stanbic Bank Kenya has upgraded its renewable energy loan product, offering better terms to customers. The announcement was made during the signing of a Memorandum of Understanding (MoU) with Safer Power Limited.
Ms. Florence Wanja, Regional Head, East Africa, Business and Commercial Banking at Stanbic Bank, emphasized that renewable energy is a strategic priority for the institution. The redesigned offering aims to make solar energy solutions more accessible:
“We have redesigned our renewable energy offering to give clients more flexibility, affordability, and access to clean energy. With extended loan tenors of up to ten years, bank financing of up to 100%, and a moratorium on principal repayments during the project development phase, we are making it easier for businesses and individuals to adopt solar energy solutions,” said Ms Wanja.
Stanbic’s partnership with Safer Power is essential to “enable access to clean energy through innovative financing, advisory services, and strong collaboration with credible players in the sector.”
Recognizing the rapid growth of solar power in Kenya, with installed capacity surpassing 229 megawatts by mid-2024 and projected annual growth over 28%, Stanbic has simplified the financing process, particularly for smaller projects:
- Simplified Credit Assessment: For SMEs and installations below USD 50,000 (Ksh. 6.5 million), clients only need to provide account turnover records instead of full financial statements.
- Reduced Collateral: No additional collateral will be required for qualifying clients.
- Financial Incentives: The bank is offering discounted interest rates and NIL processing fees for SMEs accessing these renewable energy loan facilities.
Key Features of the Enhanced Proposition
| Feature | Benefit |
| Loan Tenor | Up to 10 years for enhanced affordability. |
| Financing Level | Up to 100% financing for eligible projects. |
| Repayment Structure | Moratorium on principal repayments during the development phase. |
| SME Lending | Simplified, turnover-based lending for installations under USD 50,000. |
| Technical Support | Free energy audits by accredited EPC partners (like Safer Power). |
| Quality Guarantee | Equipment sourced exclusively from Tier 1 manufacturers. |
Mr. Dalmus Mbai, Group CEO of Safer Power Limited, welcomed the collaboration, noting that it enhances their ability to “deliver clean and affordable energy solutions by combining innovative technology with accessible and flexible financing.”
In addition to financing, Stanbic’s Business and Commercial Clients gain access to the Standard Bank’s Sustainability Academy. This platform offers businesses across the continent practical insights and training on key sustainability areas, including:
- Sustainability and ESG principles.
- Renewable energy options across industries.
- Cost benefits of Climate-smart agriculture.
- Water and wastewater management.
- Carbon markets.