KCB Launches Sh300 Billion Sustainability Bond to Boost Africa’s Climate Finance Share
KCB unveils Sh300 billion Sustainability Bond Framework to fund green projects, aiming to increase Africa’s less than 1% share of global climate finance.
By John Mtongoi Newsroom
August 19, 2026
2 min read
KCB Group has announced plans to mobilise Sh300 billion through a Sustainability Bond Framework aimed at financing environmentally and socially impactful projects across Kenya and the broader continent.
Africa currently receives less than one per cent of global climate financing despite its high vulnerability to climate change. Experts attribute this low share not to capital scarcity but to a shortage of viable, bankable projects that can attract long-term investment.
Addressing Africa’s Climate Finance Gap
Deo Onyango, Senior Industry Specialist for Sustainable Finance at the International Finance Corporation (IFC), highlighted that much of Africa’s climate finance is debt-based, which adds financial strain. He emphasized the need to diversify funding structures to support sustainable development.
Global climate finance reached an estimated $3 trillion in 2026, yet Africa’s access remains limited due to challenges in developing projects that are financially sustainable beyond initial funding.
KCB’s Sustainability Bond Framework
KCB’s new Medium Term Note (MTN) Programme, set to span five years, will initially target Sh100 billion. The bank plans to issue bonds primarily in US dollars to attract a broader range of institutional investors, with the final currency mix dependent on market conditions.
The bond proceeds will fund projects in sectors including renewable energy, green buildings, clean transportation, sustainable water management, agriculture, the blue economy, affordable housing, and enterprises led by women and youth.
Institutional Support and Impact
KCB Group CEO Paul Russo described the bond framework as an extension of the bank’s two decades of sustainability efforts, aiming to connect capital with projects delivering measurable environmental and social benefits. The framework received a “Very Good” Sustainability Quality Score from Moody’s, validating its strong sustainability credentials.
Principal Secretary Cyrell Wagunda underscored the importance of sustainable bonds in expanding Kenya’s capital markets and financing infrastructure and climate initiatives.
Since 2022, KCB has disbursed over Sh187 billion in green loans, including nearly Sh49 billion last year, demonstrating its commitment to supporting green finance across its regional markets.
