KCB Bank Kenya has secured Sh12.5 billion from the Green Climate Fund (GCF) to support green projects owned by Micro, Small and Medium Enterprises (MSMEs) and farmers.
The blended finance initiative, comprising concessional lending, a guarantee, and a grant, will fund value-chain and gender-inclusive interventions. These include adoption of solar-powered and clean cooking technologies, climate-smart agriculture, waste management, circular economy solutions, and energy efficiency improvements.
The programme aims to boost resilience, improve productivity, and support the transition to low-carbon practices among small businesses and farmers.
About 60 percent of investments will focus on climate adaptation, particularly climate-resilient agriculture and water management technologies, while 40 percent will go towards mitigation efforts such as renewable energy and energy efficiency.
Through the facility, KCB will deploy flexible credit products, blended finance structures, and digital lending platforms to scale access to financing for underserved populations.
“This is a bold step to scale climate finance. By targeting MSMEs and smallholder farmers, we are ensuring that no one is left behind in the transition to a climate-resilient future,” said Paul Russo.
The funding comes as Kenya faces rising climate vulnerability, with over 80 percent of its land classified as arid and semi-arid. These regions frequently experience droughts and floods, causing economic losses estimated at about 3 percent of GDP annually.
KCB has been ramping up its green financing efforts, having assessed loans worth Sh578.3 billion for environmental and social risks last year. This brings the cumulative total assessed since 2020 to over Sh1 trillion under its Environmental and Social Due Diligence framework.
The bank also disbursed Sh50 billion in green loans in 2025, increasing its green portfolio share to 25.84 percent from 15 percent in 2023, with investments spanning energy transition, blue economy, e-mobility, and climate adaptation initiatives.
