Foreign financial institutions to sponsor Kenya's capacity building programme - CNBC Africa

Foreign financial institutions to sponsor Kenya's capacity building programme

East Africa

by Elayne Wangalwa 0

DEG is one of the financial institution set to fund a 2.7 million Kenyan shilling capacity building programme in Kenya. PHOTO: DEG

The programme by the German development finance institution DEG –Deutsche Investitions- und Entwicklungsgesellschaft mbH and the Netherlands Development Finance Company (FMO) will be coordinated by the Kenya Bankers Association (KBA) an umbrella body of the banking sub-sector in an effort to foster capacity in the area of sustainable finance.

KBA’s membership of 45 banks which are licensed and regulated by Kenya’s central bank will be trained and program materials will be available not only to financial players in the region but also across East Africa through the East Africa Bankers Association.

According to Habil Olaka, CEO at KBA, the commitment by the two international firms will foster sustainability in Africa.

“We value the best practices that they bring to the table and look forward to equipping players with capabilities in comprehensive risk management, including mitigating environmental and social risks associated with financing activities, as well as enhancing the industry’s operational efficiency, and leveraging opportunities presented by the Green Economy,” Olaka said.

The 45 member banks will commence training after the programme is developed in five months and will run in the course of four to six months.

DEG’s Regional Director for East Africa, Eric Kaleja supports the KBA in its goal to integrate sustainable banking principles across the Kenyan banking sub-sector.

“As financial intermediates, banks will implement these principles with their clients in the wider economy across East Africa. This will contribute to sustainable development for the region,” said Kaleja.

KBA is seeking to develop an approach to build the capacity of banks to play a role in ensuring that people can live good comfortable lives by 2050.

In the training and worskshops, there will be self-training courses targeting bank credit risk managers and business development managers as well as forums for CEOs and board members.