Kenya: AfDB Group and KCB Bank Kenya Sign a $150 Million Agreement to Accelerate Green Financing and Trade
The African Development Bank Group (AfDB) and KCB Bank Kenya Limited have formalized a $150 million financing package aimed at boosting green finance and accelerating climate-smart investments. The arrangement is designed to strengthen KCB’s trade finance capacity within Kenya’s expanding small business and corporate banking space.
The package includes a $100 million subordinated debt facility to bolster KCB Kenya’s Tier II capital. This reinforcement positions KCB as a pivotal financial intermediary in key sectors and supports the bank’s target of directing 25% of its portfolio to green initiatives by 2031, including renewable energy, infrastructure, and agriculture. Additionally, a $50 million transaction guarantee will allow AfDB to provide up to 100% coverage to confirming banks against non-payment risks linked to the confirmation of letters of credit and other trade finance instruments issued by KCB.
“We are proud to partner with KCB, as this facility embodies our shared commitment to advancing Africa’s green transition while ensuring that growth goes hand in hand with environmental stewardship,” stated Alex Mubiru, AfDB Director General for East Africa. “KCB has demonstrated strong leadership in sustainable finance, and we are confident this collaboration will yield measurable climate impact and inclusive development for Kenya and the wider region.”
The collaboration is expected to yield tangible benefits for small and medium-sized enterprises, women-led businesses, and climate-resilient projects. Outcomes include expanded access to long-term finance, job creation, and greater resilience to economic shocks. The arrangement comes after a thorough appraisal and due diligence process, underscoring AfDB’s role as a counter-cyclical financier and trusted development partner.
KCB Bank Kenya has made notable progress in climate action, financial inclusion, and community development, aligning with its mission to create long-term value for stakeholders while supporting Kenya’s transition to a green and inclusive economy.
“We aim to strengthen our capacity to support customers pursuing green projects,” said Annastacia Kimtai, Managing Director of KCB Bank Kenya. “This partnership marks a major milestone in our sustainability journey, reinforcing our commitment to scale up green lending, deepen our impact, catalyze private investment, and help Kenya reach its net-zero emissions target by 2050.”
In the prior year, KCB disbursed $402 million in green loans, expanding its green portfolio to 21.32% of total lending from 15% in 2023. The funding supported environmentally friendly products spanning energy transition efforts, including initiatives in the blue economy, e-mobility, and climate change adaptation.
About KCB Bank Kenya
KCB Bank Kenya Limited stands as the largest commercial bank in Kenya. A subsidiary of KCB Group Plc, the bank has the widest branch network in the country, with 214 branches, 477 ATMs, and 22,000 agents delivering round-the-clock banking services across East Africa. The bank also provides mobile and internet banking, along with a 24-hour contact centre. KCB Group Plc maintains a global network of correspondent banks totaling more than 200 institutions.
KCB Group (https://kcbgroup.com/)
