Kenya Commercial Bank (KCB) Group has committed Sh53.2 billion to green projects, marking a significant milestone in its drive to embed sustainability at the core of its operations.
According to KCB’s 2024 Sustainability Report, launched on Tuesday, green loans now make up 21.32 per cent of its total loan portfolio, bringing the lender closer to its 2025 target of 25 per cent.
The strategy signals a shift toward climate-aligned finance, positioning the bank as one of the region’s frontrunners in sustainable banking.
“The substantial growth of our green finance portfolio reflects our commitment to aligning our business with climate action and sustainable economic development,” said Group Chief Executive Officer, Paul Russo.
The bank’s green finance focus spans renewable energy, climate-smart agriculture, green buildings, and sustainable transportation, key sectors vital for East Africa’s resilience to climate change.
By redirecting capital away from carbon-intensive industries, KCB aims to empower farmers, small businesses, and communities to adapt to changing weather patterns while driving inclusive growth.
Environment and Climate Change Principal Secretary Dr Festus Ng’eno described the financial sector as “an enabler of human progress,” noting that green finance is a lifeline for sustainable livelihoods.
“When thoughtfully directed, finance can help farmers adopt climate-smart agriculture, empower small and medium enterprises to scale, enable women and youth to unlock their entrepreneurial potential, and catalyse innovation in renewable energy and green infrastructure,” he said.
In 2024, KCB screened Sh578.3 billion in loan facilities for environmental and social risks, a testament to its expanding ESG (Environmental, Social, and Governance) commitment.
The bank also secured a $540,000 (Sh70.2 million) project preparation facility from the Green Climate Fund (GCF), the first of its kind for an East African financial institution.
The facility will support the development of a proposal to unlock $118.2 million (Sh15.37 billion) in international climate capital for green MSMEs.
KCB’s efforts align with the Net-Zero Banking Alliance and mirror global best practices among financial institutions integrating climate considerations into their lending strategies.
Beyond finance, KCB’s environmental stewardship is reflected in its “Linda Miti” afforestation initiative, through which 1.38 million trees were planted in 2024 in collaboration with 1,259 schools.
The initiative enhances biodiversity, sequesters carbon, and raises youth awareness about environmental protection.
Subsidiaries across the region have replicated this model. KCB Bank Uganda and BPR Bank Rwanda each planted 10,000 trees, while the latter also screened Sh5.3 billion in loans for ESG compliance.
In Tanzania, KCB expanded its branch network to 18 to promote rural financial inclusion, a key sustainability goal.
Source: The Standard
