The African Development Bank Group (AfDB) and KCB Bank Kenya have inked a $150 million (KSh19.36 billion) financing package aimed at fast-tracking climate-focused investments and strengthening KCB’s trade finance capacity for SMEs and corporate clients.
In a joint announcement released on 11 December 2025, the two institutions confirmed that the arrangement comprises a $100 million (KSh12.9 billion) subordinated debt facility to boost KCB’s Tier II capital and a $50 million (KSh6.45 billion) trade finance line designed to back firms involved in regional and global commerce.
Driving Green Finance
The agreement is anchored on expanding green lending, with KCB committing to direct 25 percent of its loan book towards climate-related projects by 2031. Funding will go into sectors such as renewable energy, agriculture, and infrastructure, alongside wider access to trade instruments including letters of credit.
AfDB noted that the partnership fits neatly within its High Five development priorities and complements Kenya’s climate agenda aimed at reducing emissions and advancing low-carbon growth.
Alex Mubiru, AfDB’s Director General for East Africa, welcomed the deal, calling it evidence of a shared ambition to push Africa’s green transition while supporting sustainable economic growth. He highlighted that the facility will unlock climate-linked opportunities and reinforce trade flows across the continent.
KCB’s managing director, Annastacia Kimtai, echoed the sentiment, describing the agreement as a crucial step in the bank’s sustainability ambitions. She said it strengthens KCB’s ability to finance green projects and sharpen the bank’s overall climate impact as Kenya moves towards its 2050 net-zero target.
She pointed out that in 2024, the bank disbursed $402 million (KSh51.88 billion) in green loans, raising its green portfolio from 15 percent in 2023 to 21.32 percent. Support went into energy transition initiatives across areas such as the blue economy, electric mobility, and climate resilience.
AfDB and KCB’s Wider Role
AfDB has channelled over $12 billion (KSh1.55 trillion) into climate financing across Africa since 2016. Its investments in East Africa alone have backed more than 20 renewable energy projects producing over 1,500 megawatts combined.
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KCB, which operates 214 branches and serves more than 26 million customers in the region, remains one of the most significant conduits for mobilising private capital towards sustainable growth. The bank’s green lending framework is aligned with Kenya’s National Climate Change Action Plan, which targets a 32 percent cut in emissions by 2030.
This new financing arrangement is poised to reinforce national development efforts under Vision 2030 and support the African Continental Free Trade Area by enabling cleaner trade and widening access to affordable credit for small and medium-sized enterprises.
