The African Development Bank Group and KCB Bank Kenya have signed a Sh19.4 billion financing package to accelerate green lending and trade.
The package comprises a Sh12.9 billion subordinated debt facility to strengthen KCB’s capital and a Sh6.5 billion trade guarantee. The partnership aims to expand access to finance for SMEs, women led businesses and climate resilient projects.
Under the agreement signed on Thursday, the subordinated debt facility is valued at Sh12.95 billion.
This infusion will strengthen KCB Kenya’s Tier II capital, reinforcing its position as a key financial intermediary in strategic sectors.
It also supports the bank’s ambitious target to allocate 25 percent of its portfolio to green initiatives by 2031, focusing on renewable energy, infrastructure, and sustainable agriculture.
In addition, a Sh6.47 billion, will enable AfDB to provide up to 100 percent coverage to confirming banks against non-payment risks arising from letters of credit and similar trade-finance instruments issued by KCB.
This component is aimed at deepening trade finance capacity, especially for enterprises engaged in sustainable or green‑oriented trade.
“We are proud to partner with KCB as this facility is a testament to our shared commitment to advancing Africa’s green transition and ensuring that economic growth goes hand in hand with environmental stewardship,” said Alex Mubiru, AfDB Director‑General for East Africa.
“KCB has demonstrated strong leadership in sustainable finance, and we are confident this collaboration will deliver measurable climate impact and inclusive development for Kenya and the region.” He notes.
The partnership is expected to generate meaningful benefits for small and medium‑sized enterprises (SMEs), women-led businesses, and climate‑resilient projects.
Among the anticipated outcomes are enhanced access to long-term financing, job creation, and greater resilience to economic shocks, especially for sectors vulnerable to climate change or reliant on sustainable practices.
The deal follows a rigorous appraisal and due diligence process, reflecting AfDB’s role as a counter‑cyclical financier and trusted development partner.
KCB Kenya has already made significant strides in sustainability, financial inclusion, and community development.
In the previous year alone, the bank disbursed Sh52.04 billion in green loans, raising its green portfolio to 21.32 percent from 15 percent in 2023, a strong indicator of its growing commitment to financing the green economy.
These loans supported initiatives in the blue economy, e‑mobility, and climate‑change adaptation strategies.
“We are looking to strengthen our capacity in supporting customers focusing on green projects,” said KCB Kenya Managing Director Annastacia Kimtai. “This partnership marks a significant milestone in our sustainability journey. It reinforces our commitment to scale up green lending, catalyse private investment and support Kenya’s goal of achieving net‑zero emissions by 2050.”
KCB Bank Kenya is the country’s largest commercial bank, with a branch network spanning 214 branches, 477 ATMs, and 22,000 agents across East Africa.
KCB Bank. PHOTO/HandoutThe bank offers 24/7 banking services through mobile, internet, and agent channels, backed by a global correspondent banking network of over 200 institutions, making it well‑positioned to channel this financing into impactful projects across the region.
By combining capital strengthening with trade‑finance support, the AfDB/KCB partnership is seen as a strategic move to fortify Kenya’s financial sector while catalysing investments in sustainable growth, trade expansion and climate‑smart development.
Both institutions hope the initiative will not only foster environmental stewardship, but also drive inclusive economic growth throughout Kenya and the broader East African region.
“This financing package is more than just capital, it is a catalyst for transformative change in Kenya’s financial landscape,” added Mubiru. “By combining resources and expertise, AfDB and KCB are creating opportunities for sustainable development, empowering businesses, and advancing climate‑resilient investments.”
With this landmark deal, Kenya takes a decisive step toward building a greener, more inclusive economy, supporting SMEs, women‑led enterprises, and climate‑resilient ventures, while strengthening the capacity of its banking sector to drive long-term sustainable development.
