The African Development Bank Group (AfDB) and KCB Bank Kenya Limited have signed a $150 million financing package aimed at supporting green finance and accelerating climate-smart investments, while enhancing KCB’s trade finance capacity within Kenya’s small business and corporate banking sector. The package includes a $100 million subordinated debt facility to strengthen KCB Kenya’s Tier II capital, reinforcing its role as a key financial intermediary in strategic sectors and supporting its goal to allocate 25% of its portfolio to green initiatives by 2031, covering renewable energy, infrastructure, and agriculture. A $50 million transaction guarantee will allow the African Development Bank to provide up to 100% coverage to confirming banks against non-payment risks arising from letters of credit and similar trade finance instruments issued by KCB.
Alex Mubiru, African Development Bank Director General for East Africa, highlighted that the partnership reflects a shared commitment to advancing Africa’s green transition while promoting economic growth alongside environmental stewardship. The collaboration is expected to benefit small and medium-sized enterprises, women-led businesses, and climate-resilient projects by expanding access to long-term finance, creating jobs, and increasing resilience to economic shocks. The deal followed a rigorous appraisal and due diligence process, emphasizing AfDB’s role as a counter-cyclical financier and trusted development partner.
KCB Bank has made significant progress in climate action, financial inclusion, and community development, aligning with its ambition to create long-term value for stakeholders and support Kenya’s transition to a green and inclusive economy. Annastacia Kimtai, KCB Bank Kenya Managing Director, noted that the partnership strengthens the bank’s capacity to support green projects, scale up green lending, catalyze private investment, and contribute to Kenya’s net-zero emissions goal by 2050.
In 2024, KCB disbursed $402 million in green loans, increasing its green portfolio from 15% in 2023 to 21.32%. The financing supported initiatives in energy transition, the blue economy, e-mobility, and climate change adaptation, reflecting the bank’s ongoing commitment to sustainable finance and inclusive development.
