KCB Secures Sh12.5 Billion Climate Fund to Boost Green Financing

KCB Bank Kenya has secured a $96.9 million (Sh12.5 billion) financing facility from the Green Climate Fund to scale up climate-smart investments targeting micro, small and medium enterprises (MSMEs) and farmers across the country.

The blended finance package—comprising concessional loans, a guarantee and a grant—will be deployed under the Climate Smart Technology (CST) programme to support vulnerable communities in adapting to climate change.

According to KCB, the funds will be channeled into value-chain and gender-inclusive projects, including adoption of solar-powered technologies, clean cooking solutions, climate-smart agriculture, waste management and energy efficiency initiatives. The programme aims to enhance resilience, boost productivity and accelerate the transition to low-carbon practices.

About 60 per cent of the financing will focus on climate adaptation, particularly in agriculture and water management, while 40 per cent will support mitigation efforts such as renewable energy and energy efficiency.

KCB Group Chief Executive Officer Paul Russo described the facility as a major step in expanding access to 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,” he said.

The bank plans to deploy flexible credit solutions, blended finance structures and digital lending platforms to reach underserved populations at scale.

The initiative aligns with Kenya’s National Climate Change Action Plan and its updated climate commitments, at a time when the country continues to face increasing climate risks. Over 80 per cent of Kenya’s land is classified as arid and semi-arid, with frequent droughts and floods causing economic losses estimated at about three per cent of GDP annually.

Green Climate Fund Africa Director Catherine Koffman said the programme will help unlock private capital and address financing barriers facing small businesses and farmers.

KCB said the new funding builds on its growing green financing portfolio, which has seen increased lending to environmentally sustainable projects as part of its broader strategy to support a low-carbon and inclusive economy.