Nairobi: Stanbic Bank Kenya has taken a significant step towards enhancing the country’s transition to renewable energy by unveiling a new Renewable Energy Proposition. This initiative aims to accelerate Kenya’s shift towards clean, reliable energy sources and support sustainable economic growth.
According to Kenya News Agency, the bank signed a Memorandum of Understanding (MoU) with Safer Power Limited, a prominent Engineering, Procurement, and Construction (EPC) company in the renewable energy sector. This partnership underscores Stanbic Bank’s commitment to advancing sustainable finance and making renewable energy solutions more accessible to businesses and households across the nation.
During the signing ceremony in Nairobi, Florence Wanja, the Regional Head, East Africa Business and Commercial Banking at Stanbic Bank, emphasized the strategic importance of renewable energy for the bank. She stated, “Kenya is our home, we drive her growth,” highlighting the bank’s dedication to facilitating access to affordable and sustainable power as a cornerstone of Kenya’s economic development.
Wanja elaborated on the redesigned renewable energy offerings, which provide more flexibility and affordability for clients. The bank now offers extended loan tenors of up to ten years, financing up to 100 percent, and a moratorium on principal repayments during project development, making it easier for businesses and individuals to adopt solar energy solutions.
According to Wanja, data from the Kenya Institute for Public Policy Research and Analysis (KIPPRA) and the International Energy Agency (IEA) indicate that Kenya’s installed solar capacity surpassed 229 megawatts by mid-2024, with an annual growth rate projected at over 28 percent through 2027. Solar power is viewed as a promising renewable resource and a key driver in achieving universal electricity access by 2030.
The enhanced Renewable Energy Proposition includes simplified credit assessments for SMEs and small installations below USD 50,000 (approximately Sh6.5 million), requiring only account turnover records instead of full financial statements. No additional collateral is needed for eligible clients, and documentation requirements have been streamlined to expedite financing access.
Wanja also announced that Stanbic Bank’s EPC partners will provide free energy audits to assess client energy needs and appropriate solar system sizes, ensuring optimal efficiency. Solar equipment will be sourced exclusively from Tier 1 manufacturers, ensuring the highest quality and reliability.
Furthermore, the bank has introduced discounted interest rates and waived processing fees for renewable energy loans for SMEs, providing financial relief amid the current economic climate.
Dalmus Mbai, Group CEO of Safer Power Limited, expressed confidence in the collaboration with Stanbic Bank Kenya, stating that it enhances the company’s ability to deliver clean and affordable energy solutions nationwide. “Together, we are driving Kenya’s renewable energy transition by combining innovative technology with accessible and flexible financing,” he affirmed.
In summary, the key highlights of Stanbic Bank’s enhanced Renewable Energy Proposition include a loan tenor of up to 10 years, up to 100 percent financing, moratorium on principal repayments during the development phase, and simplified turnover-based lending for SMEs and installations below USD 50,000 (approximately Sh6.5 million). Additional benefits include no additional collateral for qualifying clients, access to credible Solar EPCs, free energy audits, and competitive interest rates.
The partnership with Safer Power is part of Stanbic Bank’s broader strategy to deliver comprehensive financial and technical solutions supporting Kenya’s sustainability goals, empowering clients to transition to renewable energy and enhancing the country’s energy independence.
Additionally, Stanbic’s business and commercial clients gain access to Standard Bank’s Sustainability Academy, a platform designed to bridge the sustainability knowledge gap and provide practical environmental, social, and governance solutions across the continent.