Nairobi, April 5 -- Banks will fight for a Sh50 billion World Bank-backed fund aimed at supporting SMEs investing in climate change mitigation.

A new report by the World Bank notes that Kenya's State Department of Investment Promotion (SDIP) will provide the seed capital for the green investment fund (GIF).

The seed capital will be in the form of a mezzanine loan, a hybrid of equity and debt. GIF will mobilise funds from the private sector to manufacture electric vehicles (EVs), build green houses, provide water and sanitation, and smart agriculture.

The SDIP, which falls under the Ministry of Investment Trade and Industry), will be the executing agency through the Kenya Development Corporation (KDC).

Banks, mostly those with financia...