The government is leveraging public-private partnerships to increase green financing in key economic pillars like energy and infrastructure.
Investment Cabinet Secretary Lee Kinyanjui is urging commercial lenders to increase lending to green projects for sustainability.
The Central Bank of Kenya (CBK) unveiled the green finance taxonomy policy, with the regulation aimed at lowering the cost of credit going to fund green projects like energy and the agricultural sectors.
The regulations seek to attract and embolden funding into Kenya’s green projects. Kenya is a major recipient of green financing, accounting for close to 50pc of all green financing that flows to the continent.
The Taxonomy policy requires lenders to provide information on their lending activities on environmental and climate-related businesses.
The government says it is planning more regulations and public private partnership to ensure green borrowers access cheap credits to facilitate their businesses.
In measures aimed at expanding their green loan book Stanbic bank, it screens loans above Ksh 130 million to ensure, borrowers incorporate green components in their businesses.
In 2024 the lender issued over Ksh 500 million in solar loans to support the transition to green energy and achieve net-zero emissions.
