KCB Bank Kenya Limited (KCB) has signed a $150 million financing package with the African Development Bank Group (AfDB) to accelerate green finance and climate-smart investments, enhance its trade finance capacity within Kenya’s growing small business and corporate banking sector.
The package includes a $100 million subordinated debt facility to strengthen KCB’s Tier II capital, reinforcing its role as a key financial intermediary in strategic sectors. KCB aims to allocate 25% of its portfolio to green initiatives by 2031, targeting renewable energy, infrastructure, and agriculture projects. Additionally, a $50 million transaction guarantee will allow AfDB 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, AfDB Director General for East Africa, said: “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. 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.”
The partnership is expected to benefit small and medium-sized enterprises, women-led businesses, and climate-resilient projects, providing expanded access to long-term finance, creating jobs, and enhancing resilience to economic shocks. The deal followed a rigorous appraisal and due diligence process, highlighting AfDB’s role as a counter-cyclical financier and trusted development partner.
KCB Managing Director Annastacia Kimtai said: “This partnership marks a significant milestone in our sustainability journey. It reinforces our commitment to scale up green lending, deepen our impact, catalyse private investment, and support Kenya’s goal of achieving net-zero emissions by 2050.”
Last year, KCB disbursed $402 million in green loans, growing its green portfolio to 21.32% from 15% in 2023, supporting energy transition initiatives including the blue economy, e-mobility, and climate change adaptation projects.
