Nairobi: The Kenya Commercial Bank (KCB) has established a medium-term sustainability bond programme of up to Sh300 billion for over five years to finance green, blue, and social investments, subject to regulatory approvals and prevailing market conditions.
According to Kenya News Agency, the framework was launched at the KCB Leadership Centre in Karen, Nairobi, with the Cabinet Secretary for The National Treasury and Economic Planning John Mbadi noting that the framework would be critical in advancing sustainable financing and unlocking long-term capital for investments aligned with Kenya’s development priorities. Mbadi, in a speech read on his behalf by the Principal Secretary for Public Investments and Assets Management, Cyrell Odede Wagunda, stated that the launch is a powerful testament to the continued diversification and transformation of Kenya’s sustainable financing, reflecting financial innovation and the growing sophistication of the country’s financial markets.
Further, he noted that the framework demonstrates the potential of Kenya’s capital markets to structure financial solutions that respond to the evolving needs of investors while supporting sustainable development. Mbadi added that it affirms the ability to mobilise substantial green capital to finance critical national priorities, reducing over-reliance on traditional financing, and strengthening Kenya’s economic resilience.
Equally, the CS reaffirmed the Government’s commitment to promoting long-term sustainable development through green financing and channelling capital into productive investments. He described KCB’s framework as a ‘historic milestone’ that provides a blueprint for sustainably financing large-scale infrastructure through innovative, market-based mechanisms. He also commended the KCB Board and management for the initiative, assuring the bank of the National Treasury’s continued collaboration in developing innovative financing solutions that promote sustainability.
In his remarks, KCB Group Chief Executive Officer (CEO) Paul Russo announced that the framework would provide a disciplined mechanism for directing capital towards investments with measurable environmental and social benefits. The programme will support projects in renewable energy, energy-efficient buildings, clean transport, sustainable agriculture, water and waste management, as well as marine and coastal ecosystems.
Additionally, the CEO highlighted that its social component will support affordable housing, healthcare, Micro, Small and Medium Enterprises (MSMEs), women- and youth-led enterprises, and initiatives aimed at creating employment and livelihoods. Russo further reported that KCB had progressively integrated sustainability into its business, including financing decisions and risk management, and aligned its sustainability agenda with 14 of the 17 United Nations Sustainable Development Goals. He stated that the framework is intended to bring together capital, purpose, and accountability by directing financing towards projects that deliver measurable development outcomes, adding that its success will ultimately be measured by the impact created through cleaner, more resilient, and inclusive communities.
Meanwhile, the launch brought together Government officials, investors, development partners, and financial sector players who commended the financier’s framework for advancing sustainable financing and unlocking long-term capital for investments aligned with Kenya’s development priorities.
