KCB expands climate finance, screens $4.5 billion in transactions

KCB Group Plc, East Africa’s largest commercial banking and financial services holding company, has screened Ksh587.9 billion ($4.54 billion) in transactions under its Environmental and Social Due Diligence (ESDD) framework across Kenya, Uganda, Tanzania, and Rwanda, as the lender strengthened climate risk governance and environmental screening across its portfolio.

The disclosures mark KCB’s third sustainability report to undergo limited assurance review, reflecting a broader effort to strengthen reporting credibility and align capital allocation decisions with long-term sustainability objectives.

Of the over $4.5 billion worth of transactions screened, the banking group has also extended Ksh48.8 billion ($376.88 million)) in green financing during 2025, accelerating funding for renewable energy, sustainable agriculture, green buildings, clean transportation and climate-smart investments across East Africa while surpassing its internal sustainable lending target.

KCB expands sustainable lending across East Africa

Sustainable finance is becoming a competitive growth segment for African banks as regulators, development finance institutions and investors increasingly tie capital access to environmental performance and climate disclosure standards.

According to the lender’s 2025 Sustainability Report, “Transitioning Economies,” the bank increased the share of total lending allocated to green projects to 25.84% in 2025, up from 21.6% a year earlier, surpassing its strategic goal of directing 25% of its loan book toward sustainable finance initiatives. Of the total green financing disbursed, Ksh9.9 billion ($76.5 million) was independently verified as climate-eligible using the Climate Assessment for Financial Institutions (CAFI) framework.

The green financing supported projects spanning renewable energy systems, sustainable agriculture, water management, environmentally efficient buildings and cleaner transportation infrastructure.

CEO outlines strategy for climate resilience and business growth

KCB Group Chief Executive Officer Paul Russo said the lender is aligning financing decisions and business strategy to support climate resilience and sustainable enterprise growth across its operating markets.

KCB has also expanded solar installations to 16 operational branches, including locations in remote and off-grid areas, and plans to extend deployment to 30 additional branches.

Those initiatives contributed to a 2% reduction in fuel and electricity resource use and helped deliver a 13%  decline in overall emissions across the Group during the year.

The bank is positioning sustainable finance as a growth engine by expanding tailored green lending products targeting micro, small and medium enterprises (MSMEs), households and corporates seeking to adopt lower-carbon operating models and improve environmental performance.

Beyond lending: tree planting and clean energy rollout

Beyond financing activity, KCB accelerated environmental conservation and operational decarbonization efforts. The Group exceeded its 2025 tree-growing target of 1.5 million trees by planting more than 3.5 million trees through more than 200 regional campaigns conducted with 1,778 schools and partner organizations.

The lender also advanced clean-energy adoption within the education sector through its Learning Institutions Customer Value Proposition program, supporting 266 schools to transition toward cleaner cooking systems with Ksh782.5 million ($6.04 million) in financing.

KCB’s ability to exceed its green lending target signals growing commercial demand for climate-linked financing across East Africa, particularly in energy infrastructure, agriculture, education and industrial modernization.