logo
ADVERTISEMENT
Business12 June 2026 - 06:13

KCB Group reviewed green loans estimated at Sh588 billion in 2025

It disbursed Sh49 billion to renewable energy, sustainable agriculture and transport

image
by VICTOR AMADALA
Vocalize Pre-Player Loader

Audio By Vocalize












KCB Group Plc disbursed Sh48.8 billion in green financing loans to support environmentally sustainable projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management, and climate-smart investments.

Out of this, Sh9.9 billion was independently verified as climate-eligible using the Climate Assessment for Financial Institutions (CAFI) tool. 

In 2025, the lender screened Sh587.9 billion worth of transactions under its Environmental and Social Due Diligence framework covering operations across as part of its commitment to accelerating the transition toward a low-carbon economy.

The milestone enabled the Group to surpass its strategic target of allocating 25 per cent of total lending to green projects, reaching 25.8 per cent in 2025, up from 21.6 per cent in 2024.

The disclosures are contained in the 2025 KCB Group Sustainability Report themed “Transitioning Economies”, marking a defining moment in the Group’s strategic journey to position sustainable finance as a driver of inclusive economic transformation across East Africa.

KCB Group CEO, Paul Russo, said that the bank is intentionally aligning its financing decisions and business strategy to support climate resilience and sustainable enterprise growth as a catalyst for long-term economic prosperity, environmental stewardship, and inclusive development across the markets in which it operates.

“We seek to be a bigger player in shaping a robust and sustainable financial ecosystem throughout East Africa by continuously developing tailored green financing solutions for MSMEs, households, and corporates.”

“This will be enabled through strengthened partnerships with global climate financiers to mobilise capital at scale, product innovation and accelerate the transition to a low-carbon and climate resilient economy throughout the region,” said Russo.

Beyond financing, KCB continued to invest in practical environmental conservation initiatives through the ongoing tree growing campaign, which has become a significant milestone in supporting Kenya’s national climate action agenda and ecosystem restoration efforts.

In the year under review, the bank surpassed its 2025 target of 1.5 million trees by planting more than 3.5 million trees.

This achievement was driven by over 200-regionwide tree-planting events, in collaboration with 1,778 schools and other partners.

In the education sector, it supported 266 schools in adopting cleaner cooking systems, backed by Sh782.5 million in financing through the Learning Institutions Customer Value Proposition (CVP).

It scaled its solarisation agenda with installations now operational in 16 branches across the Group.

As a result, KCB registered a two per cent reduction in resource use for fuel and electricity, contributing to an overall 13 per cent reduction in emissions across its networks.

Through the KCB Foundation programmes, over 265,300 jobs were supported, while 16,549 youth benefited from workforce readiness and skills development initiatives designed to enhance employability and enterprise growth.

In addition, 38,635 youth-led businesses received structured business development support under the 2Jiajiri Young Africa Works programme, helping young entrepreneurs build sustainable enterprises and livelihoods.

It has supported a total of 67,090 businesses, as part of its broader vision of driving inclusive economic transformation, empowering communities, and expanding opportunity for individuals and enterprises across all segments of society.

The report marks the lender’s third sustainability report to undergo a limited assurance review.

It was prepared in reference to the IFRS S1 and S2 Standards and published alongside the 2025 Integrated Report, demonstrating the bank’s voluntary early adoption ahead of the mandatory deadline set for the 2027 reporting period.

ADVERTISEMENT
logo

Follow us:
© The Star 2026. All rights reserved