How KCB Plans to Raise Ksh 300B to Fund Green and Social Projects

KCB Group CEO, Paul Russo addressing the media during a past event. PHOTO/FILE.

KCB Group has unveiled a KSh300 billion Medium Term Note programme, with the first tranche targeting up to KSh100 billion to finance projects with environmental and social benefits.

The five-year programme is subject to relevant regulatory approvals and will be guided by the bank’s newly launched Sustainability Bond Framework.

KCB Targets KSh100 Billion in First Tranche

KCB said proceeds from the bond will be ring-fenced for eligible green, blue and social projects, with the framework setting out how projects will be identified, evaluated and selected.

The financing will target renewable energy, green buildings, clean transportation, sustainable water management and agriculture.

Other areas include affordable housing, the blue economy, MSMEs, women and youth-led enterprises, as well as initiatives supporting employment and livelihoods.

Moody’s, a global financial ratings and research company, gave the framework an SQS 2 rating, describing the quality of KCB’s plans for using the bond proceeds as “Very Good.”

KCB Group CEO Paul Russo said the framework builds on the bank’s work over the past two decades to develop financing solutions with economic and social impact.

“The launch of the Sustainability Bond Framework is a natural progression of the work the Group has been doing over the last two decades,” Russo said.

Also Read: KBC Ranked Among Top 8 Most Trusted Media Houses in Kenya

KCB Builds on Ksh187 Billion Green Loans

The bond programme comes as KCB expands its existing green financing activities.

The bank says it has disbursed more than KSh187 billion in green loans since 2022, supporting projects that advance the green transition and climate resilience.

In 2025 alone, KCB disbursed KSh48.8 billion in green financing across its regional markets. The funds supported renewable energy, sustainable agriculture, green buildings, clean transportation, water management and climate-smart investments.

The framework combines two approaches—Use of Proceeds and Sustainability-Linked Bonds—giving KCB flexibility in structuring future issuances.Also Read:How to Apply for Bankruptcy Protection Through BRS

Government Welcomes KCB Financing Plan

The government has welcomed the initiative, with Principal Secretary in the State Department for Public Investments and Asset Management Cyrell Wagunda saying sustainable bonds will be important in attracting capital for infrastructure, enterprise and climate action.

Principal Secretary in the State Department for Blue Economy and Fisheries Betsy Njagi also backed the framework, saying partnerships with financial institutions can help direct capital towards environmental resilience and inclusive growth.

KCB said the initiative builds on its sustainability journey, which began in 2008 when it formally adopted sustainability as a way of doing business.

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