I&M Bank champions green economy with $30M SIDA deal & SME sustainability drive

I&M Bank Kenya is cementing its role as a pioneer in sustainable finance. During the first quarter of 2026, the lender made massive strides in its Environmental, Social, and Governance (ESG) agenda, unveiling two landmark partnerships aimed at financing climate-aligned projects and future-proofing local Small and Medium Enterprises (SMEs).

With the effects of climate change putting pressure on East African economies, I&M Bank Kenya’s dual-track strategy addresses both large-scale environmental funding and grassroots corporate sustainability.

The USD 30 million green portfolio

The crown jewel of I&M Bank’s Q1 ESG achievements is a strategic partnership with the Swedish International Development Cooperation Agency (SIDA). Under this agreement, the bank has unlocked a USD 30 million (Ksh. 3.9 billion) green lending portfolio.

This fund is earmarked exclusively for climate-aligned projects across Kenya. By lowering financial barriers for green initiatives, the facility will support critical sectors such as renewable energy, energy efficiency, climate-smart agriculture, and sustainable waste management.

The B Lab Africa Alliance

Recognizing that small businesses are the backbone of the Kenyan economy but often lack the framework to implement ESG policies, I&M Bank also teamed up with B Lab Africa.

Together, they have launched the Resilient Sustainable Business (RSB) programme. This initiative is specifically designed to train, mentor, and equip local SMEs with the tools needed to adopt ethical corporate governance, reduce their carbon footprints, and build long-term operational resilience.

I&M Bank Kenya’s Q1 2026 ESG framework

Why this matters

By tying credit access to environmental and social performance, I&M Bank Kenya is helping shift the local market toward a low-carbon economy. This strategy not only mitigates environmental risk for the bank’s loan book but also opens up competitive new markets for green innovators.