KCB Bank Kenya has secured Ksh 12.5 billion ($96.9m) to expand its lending to green projects run by Micro, Small and Medium Enterprises (MSMEs) and farmers across the country.
KCB Group Chief Executive Officer Paul Russo said the facility from the Green Climate Fund (GCF) will support extension of flexible credit products, mixed finance structures, and digital lending platforms, to reach underserved populations at scale.
“This is a bold step to scale climate finance climate finance. By targeting MSMEs and smallholder farmers we are ensuring that no one is left behind in the transition to a climate-resilient future. Our goal is to empower these communities with the tools, technologies, and financing they need to thrive in the face of climate change threats,” said Russo.
The GCF facility which a mix of concessional lending, a guarantee, and a grant under the Climate Smart Technology (CST) programme targets Kenya’s most vulnerable communities.
The lender said the facility will be deployed towards supporting value-chain and gender-inclusive interventions through the adoption of solar-powered and clean cooking technologies, climate-smart agriculture, waste management and circular economy as well as energy efficiency improvements.
“By crowding in private capital and derisking climate- smart investments, GCF finance will empower Kenya’s MSMEs and farmers to adopt solutions that strengthen resilience, productivity and long-term economic stability. The investment reflects GCF’s ability to unlock private investment to deliver capital at scale and the Fund’s commitment to be Kenya’s climate partner of choice,” said Catherine Koffman, Director of the GCF Department of the Africa Region.
The facility is further backed to help the targeted groups build resilience, improve productivity, and transition to low-carbon practices.
At least 60pc of investments will focus on adaptation, particularly climate-resilient agriculture and water management technologies, while 40pc will target mitigation technologies such as renewable energy and energy efficiency.
According to the bank, loans to environmental and social risks topped Ksh 578.3 billion last year brining its total green financing loan book to Ksh 1 trillion since 2020.
KCB also disbursed Ksh 50 billion in green loans, growing its green portfolio to 25.8pc from 15pc in 2023.
