AFRICAN DEVELOPMENT BANK & KCB ANNOUNCE $150 MILLION DEAL TO BOOST GREEN LENDING

African Development Bank (AfDB) and KCB Bank Kenya entered into a $150 million agreement. This funding aims to increase lending for environmentally friendly projects and expand trade finance in Kenya, particularly for small and medium-sized businesses.

The agreement includes two main parts. First, $100 million will be provided as subordinated debt to strengthen KCB’s financial base. This will help the bank direct more of its lending with a target of 25% by 2031 toward green projects in areas like clean energy, farming and infrastructure. Second, a $50 million guarantee will protect other banks that confirm KCB’s trade documents, such as letters of credit, encouraging more trade activity.

Alex Mubiru, the AfDB’s Director General for East Africa, stated that this partnership reflects a joint commitment to support Africa’s shift toward a greener economy. He praised KCB’s leadership in sustainable finance and expressed confidence that the collaboration would lead to positive climate and development results for Kenya and the region.

The deal is expected to benefit small businesses, companies led by women, and projects designed to withstand climate change. It should improve access to longer-term financing, create jobs, and build economic resilience. The AfDB’s thorough review process highlighted its role as a reliable development partner, especially during economic uncertainties.

KCB has been actively involved in climate initiatives and expanding financial access. The bank aims to build long-term value while supporting Kenya’s move to a green and inclusive economy.

Annastacia Kimtai, Managing Director of KCB Bank Kenya, explained that the partnership will enhance the bank’s ability to support customers working on green projects. She called it a step in KCB’s sustainability efforts, helping to grow green lending, attract private investment, and support Kenya’s target of net-zero emissions by 2050.

In the previous year, KCB provided $402 million in green loans, increasing its green portfolio from 15% to over 21%. This funding supported projects related to clean energy transition, the blue economy, electric mobility, and climate adaptation.