The African Development Bank Group (AfDB) and KCB Bank Kenya Limited have signed a $150 million (Ksh19.365 billion) financing agreement to accelerate climate-smart investments and expand KCB’s trade finance capacity to support small businesses and corporate banking.
In a public press release dated December 11, 2025, the two financial institutions confirmed that the agreement includes a $100 million (Ksh12.915 billion) subordinated debt facility to strengthen KCB’s Tier II capital and a $50 million trade (Ksh6.45 billion) finance line to support businesses engaged in regional and global trade.
KCB and AfDB collaboration
According to the statement, the deal aims to accelerate green lending, with KCB pledging to allocate 25% of its loan portfolio to climate-related investments by 2031.
The financing will target sectors such as renewable energy, infrastructure, and agriculture, while expanding access to trade finance instruments, such as letters of credit.
AfDB said the partnership aligns with its High Five priorities and Kenya’s climate action plan, which seeks to reduce emissions and promote low-carbon growth.
Alex Mubiru, AfDB Director General for East Africa, expressed his delight at the signing of the multi-billion shilling deal and pledged to work with his company to complete more initiatives to help more people.
“We are proud to partner with KCB as this facility is a testament to our shared commitment to advancing Africa’s green transition and ensuring that economic growth goes hand in hand with environmental stewardship.”
He reiterated that the collaboration with KCB will unlock climate opportunities and strengthen trade flows across the continent and urged more companies to adopt such initiatives.
KCB Bank Kenya Managing Director Annastacia Kimtai also praised the two institutions for ensuring the deal was successful, further underscoring the importance of the collaboration.
“We are looking to strengthen our capacity in supporting customers focusing on green projects. This partnership marks a significant milestone in our sustainability journey as it reinforces our commitment to scale up green lending and enable us to deepen our impact, catalyse private investment and support Kenya’s goal of achieving net-zero emissions by 2050.”
She also added that KCB disbursed $402 million (Ksh51.88 billion) in green loans in 2024, which led to the growth of the bank’s green portfolio to 21.32% from 15% in 2023.
The support was extended to green products designed to foster energy transition, including initiatives in the blue economy, e-mobility, and climate change adaptation.
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Kimtai explained that the support was extended to green products designed to foster energy transition, including initiatives in the blue economy, e-mobility, and climate change adaptation.
AfDB Investments and KCB’s Green Lending Framework
The African Development Bank has committed over $12 billion (Ksh1.55 trillion) to climate finance across Africa since 2016, with Kenya among its top beneficiaries.
According to AfDB data, the institution’s investments have supported more than 20 renewable energy projects in East Africa, including geothermal and solar plants that collectively generate over 1,500 megawatts.
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KCB Bank, on its part, operates 214 branches and serves over 26 million customers across the region, making it a key player in mobilizing private capital for sustainable development.
The bank’s green lending framework aligns with Kenya’s National Climate Change Action Plan, which aims to reduce greenhouse gas emissions by 32% by 2030.
This latest financing deal is expected to complement government efforts under Vision 2030 and the African Continental Free Trade Area by promoting low-carbon trade and expanding access to affordable credit for small and medium-sized enterprises.
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