At a Glance
The African Development Bank Group (AfDB) and KCB Bank Kenya Limited have signed a $150 million package to expand green finance and strengthen KCB’s capacity to support climate-focused projects.
The agreement aims to widen access to funding for small businesses and large corporations as demand grows for sustainable investments in Kenya.
The package includes a $100 million subordinated debt facility that will bolster KCB Kenya’s Tier II capital. The funding will help the bank step up lending in renewable energy, infrastructure and agriculture as it works toward directing a quarter of its loan book to green projects by 2031.
A separate $50 million transaction guarantee gives AfDB room to provide full coverage to confirming banks against non-payment risks tied to letters of credit and similar trade instruments issued by KCB.
The move is expected to ease trade flows and support businesses that rely on imported equipment and raw materials.
Bank leaders highlight shared goals
“We are proud to partner with KCB as this facility shows our shared commitment to advancing Africa’s green transition and ensuring economic growth goes hand in hand with environmental responsibility,” said Alex Mubiru, AfDB’s Director General for East Africa.
He added that KCB has built a strong record in sustainable finance and that the new support is likely to deliver measurable climate benefits.
The collaboration is expected to benefit small and medium-sized enterprises, women-led firms and climate-resilient projects.
AfDB said its due-diligence process confirmed the bank’s ability to channel funds toward long-term projects that can create jobs and help shield communities from economic shocks.
KCB grows its green lending
KCB has stepped up its work in financial inclusion and climate action as part of its plan to support Kenya’s shift to a low-carbon economy. “We are looking to strengthen our capacity in supporting customers focusing on green projects,” said KCB Bank Kenya Managing Director Annastacia Kimtai.
“This partnership is a key step for us as it helps scale up green lending, attract private capital and support Kenya’s goal of reaching net-zero emissions by 2050.”
Last year, KCB disbursed $402 million in green loans, increasing its sustainable portfolio to 21.32 percent from 15 percent in 2023. Funding went to energy-transition products and projects in the blue economy, e-mobility and climate-adaptation efforts.
Kenya’s top lender with global links
KCB Bank Kenya Limited is the country’s largest commercial bank and a subsidiary of KCB Group Plc. It operates 214 branches, 477 ATMs and more than 22,000 agents across East Africa, supported by mobile and online banking platforms and a 24-hour contact center. The Group also maintains correspondent ties with more than 200 banks worldwide.
