KCB Group has unveiled a new Sustainability Bond Framework as it prepares to raise up to Ksh300 billion from investors over five years.
The planned Medium-Term Note programme will be issued in phases, with the first tranche targeting up to Ksh100 billion.
However, the bank clarified that the bond offer and subsequent issuances remain subject to approval by the relevant regulators.
According to KCB, funds raised through the programme will be ring-fenced and directed towards qualifying green, blue and social projects.
The targeted areas include renewable energy, environmentally friendly buildings, clean transport, sustainable water management, agriculture and the blue economy.
The programme will also finance affordable housing, micro, small and medium-sized enterprises, women and youth-led businesses, as well as initiatives supporting employment and livelihood creation.
KCB Group Chief Executive Officer Paul Russo said the framework builds on the lender’s efforts to develop financing solutions with measurable economic and social benefits.
“The launch of the Sustainability Bond Framework is a natural progression of the work the Group has been doing over the last two decades,” Russo stated.
He added that KCB intends to combine capital, purpose and accountability while using finance to create sustainable value for its stakeholders.
The framework received a Sustainability Quality Score of SQS2, classified as “Very Good”, from global ratings agency Moody’s.
It outlines how KCB will identify, assess and select projects eligible to receive financing from the bond proceeds.
The framework has two components: Use of Proceeds bonds and Sustainability-Linked Bonds. KCB said the structure will provide flexibility for future issuances while strengthening its commitment to incorporating sustainability into its financial strategy.
Principal Secretary for Public Investments and Asset Management Cyrell Wagunda Odede welcomed the initiative, noting that sustainable bonds could help Kenya attract capital for infrastructure, businesses, climate action and other development priorities.
Odede further observed that innovative financial instruments would be important as the country seeks to deepen its capital markets and widen its pool of development financing.
Principal Secretary for Blue Economy and Fisheries Betsy Njagi said the framework complements the government’s efforts to diversify Kenya’s development financing sources.
She noted that partnerships with financial institutions could help direct capital towards projects promoting environmental resilience, inclusive growth and long-term sustainability.
KCB formally adopted sustainability as part of its business model in 2008, focusing on financial, economic, social and environmental considerations.
The lender reported that it has disbursed more than Ksh187 billion in green loans since 2022.
In 2025 alone, KCB issued Ksh48.8 billion in green financing across its regional markets. The funds supported projects in renewable energy, sustainable agriculture, green buildings, clean transport, water management and other climate-smart investments.
