KCB Group Launches Sustainability Bond Framework for KSh300 Billion MTN
KCB Group Launches Sustainability Bond Framework for KSh300 Billion MTN
KCB Group has unveiled its Sustainability Bond Framework – Use of Proceeds, laying the foundation for a planned KSh300 billion Medium Term Note programme aimed at mobilising long-term capital for projects that deliver environmental and social impact.
The five-year programme, subject to regulatory approvals, will have an initial tranche targeting up to KSh100 billion, with the proceeds set to be ring-fenced and channelled towards eligible Green, Blue and Social Projects.
The funding is expected to support investments in renewable energy, green buildings, clean transportation, sustainable water management, agriculture, the blue economy, affordable housing and Micro, Small and Medium Enterprises.
Women and youth-led enterprises, as well as initiatives supporting employment and livelihood creation, are also among the areas expected to benefit.
KCB Group CEO Paul Russo said the framework marked a natural progression of the bank’s long-standing efforts to develop innovative financing solutions that create both economic and social value.
“The launch of the Sustainability Bond Framework is a natural progression of the work the Group has been doing over the last two decades to structure innovative financing solutions and support investments that have a meaningful economic and social impact,” Russo said.
“This is about bringing Capital, Purpose and Accountability and using finance as a force for good while creating sustainable value for all our stakeholders,” he added.
The Framework received a Sustainability Quality Score of SQS2 – Very Good from Moody’s and establishes a process for identifying, evaluating and selecting projects eligible for financing.
KCB said the framework is structured around two features — Use of Proceeds bonds and Sustainability-Linked Bonds — giving the lender flexibility in future issuances while reinforcing its commitment to embedding sustainability at the centre of its financial strategy.
Principal Secretary for Public Investments and Asset Management Cyrell Wagunda Odede welcomed the initiative, saying sustainable bonds could play an increasingly important role as Kenya seeks to deepen its capital markets and diversify financing for key development priorities.
“Innovative instruments such as sustainable bonds will be critical in attracting capital and unlocking new opportunities,” Odede said.
State Department for Blue Economy and Fisheries Principal Secretary Betsy Njagi said the framework complemented the government’s broader efforts to diversify sources of development financing and direct capital towards investments supporting environmental resilience and inclusive growth.
The latest move builds on KCB’s sustainability journey, which began in 2008 when the Group formally adopted sustainability as part of its business model.
Since 2022, the bank has disbursed more than KSh187 billion in green loans, while KSh48.8 billion was issued last year across its regional markets to support projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management and other climate-smart investments.
The planned KSh300 billion programme now positions KCB to tap into the growing appetite for sustainable finance while directing more capital towards projects expected to support East Africa’s transition to a low-carbon, climate-resilient and inclusive economy.
