The African Development Bank Group (AfDB) and KCB Bank Kenya (KCB) have finalized a landmark $100 million line of credit agreement. This financing is specifically designed to significantly boost the availability of funding for climate-smart and green projects across Kenya, with a priority focus on private sector businesses, including the robust small business and corporate banking sectors.
The total financing package is structured in two tranches: $70 million and $30 million. This capital is intended to strengthen KCB’s strategic commitment to sustainable investments, drive economic development in crucial sectors, and support the Bank’s objective of allocating 25% of its total portfolio to green initiatives by 2025.
An additional benefit of the $100 million Line of Credit is its capacity to enhance coverage for confirming banks, mitigating non-payment risks stemming from the confirmation of eligible trade finance transactions across various sectors in the country.
Speaking at the signing ceremony in Nairobi, Nnenna Nwabufo, the African Development Bank Group Director General for East Africa, emphasized the deal’s significance: “The facility aims to contribute to advancing Africa’s green transition and ensuring that economic growth goes hand-in-hand with environmental sustainability. This Line of Credit is a testament to the strong partnership between the African Development Bank Group and KCB Bank Kenya. We look forward to seeing the positive impact of this collaboration and we are confident this collaboration will deliver measurable climate impact and inclusive growth in Kenya and the East Africa region.”
The funding is earmarked to provide substantial support to critical areas, including:
- Climate-smart enterprises.
- Women-led businesses.
- Climate-resilient projects.
- Expanded access to financing for renewable energy.
- Sustainable agriculture.
- Climate-resilient infrastructure.
Annastacia Kimtai, KCB Bank Kenya Managing Director, highlighted the alignment of the partnership with the bank’s long-term vision.
“We are focused on driving climate action, gender inclusion, and community development, in line with its ambition to create long-term value for stakeholders while contributing to a more resilient and sustainable future for Kenya.”
Ms. Kimtai further noted that the partnership will specifically enable the bank to finance “climate-friendly and environmentally conscious projects.” She concluded that the collaboration supports KCB Bank Kenya’s pledge to increase green lending, helping clients catalyze private investment and contributing directly to Kenya’s national goal of achieving net-zero emissions by 2050.