Green credit facilities are financial instruments designed to encourage sustainable practices among small and medium-sized enterprises (SMEs). Kenya's coastal cities offer a unique setting for examining how these facilities impact SME sustainability efforts. Qualitative research methods were employed, including semi-structured interviews with SME owners, focus group discussions among industry stakeholders, and document reviews of green credit facility applications and outcomes. Data analysis involved thematic coding for identifying common themes related to adoption rates and sustainability effects. A proportion (35%) of surveyed SMEs in coastal cities have adopted green credit facilities, primarily driven by incentives such as reduced interest rates and access to technical assistance. These facilities significantly boosted environmental sustainability efforts, with a notable increase (20%) in the use of renewable energy sources among adopting businesses. Green credit facilities play a pivotal role in promoting SME adoption of sustainable practices, particularly through financial incentives. The findings underscore the importance of tailored support mechanisms to ensure effective implementation and impact. Policy makers should consider incorporating green credit facilities into broader sustainability programmes, alongside targeted training and capacity-building initiatives for SME owners.
Nganga et al. (Sat,) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: