$150m AfDB–KCB Deal to Accelerate Kenya’s Green Transition
The African Development Bank Group (AfDB) and KCB Bank Kenya have signed a USD 150 million financing agreement aimed at accelerating green lending, supporting climate-smart investments, and strengthening trade finance across Kenya’s growing SME and corporate banking sectors.
The package includes a USD 100 million subordinated debt facility designed to reinforce KCB Kenya’s Tier II capital. The facility will support the bank’s ambition to allocate 25% of its lending portfolio to green initiatives by 2031. These initiatives span renewable energy, sustainable infrastructure, and climate-resilient agriculture.
A further USD 50 million transaction guarantee will allow the AfDB to offer up to 100% cover to confirming banks, mitigating non-payment risks linked to letters of credit and other trade finance instruments issued by KCB.
Alex Mubiru, the AfDB’s Director General for East Africa, hailed the partnership as a major boost for the continent’s green transition.
“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,” he said. “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 collaboration is expected to drive significant impact for SMEs, women-led enterprises and climate-resilient projects by expanding access to long-term financing, creating jobs and building resilience against economic shocks. The agreement follows a detailed appraisal and due-diligence process, highlighting the AfDB’s role as a trusted development partner and counter-cyclical financier.
KCB Bank Kenya Managing Director, Annastacia Kimtai, said the partnership strengthens the bank’s capacity to scale up green lending.
“We are looking to strengthen our capacity in supporting customers focusing on green projects,” she said. “This partnership marks a significant milestone in our sustainability journey as it reinforces our commitment to scale up green lending, catalyse private investment and support Kenya’s goal of achieving net-zero emissions by 2050.”
KCB disbursed USD 402 million in green loans last year, expanding its green portfolio from 15% in 2023 to 21.32% in 2024. The funding supported a broad range of initiatives including e-mobility, blue-economy ventures, and climate adaptation programmes.
KCB Bank Kenya, the country’s largest commercial bank, continues to strengthen its financial inclusion and sustainability commitments as part of wider efforts to advance Kenya’s transition towards a green and inclusive economy.
