KCB Group has unveiled a Sustainability Bond Framework that paves the way for the issuance of a Ksh.300 billion Medium Term Note Programme, positioning the lender to channel long-term capital into projects with measurable environmental and social returns.
The programme, to be rolled out over five years, will see the first tranche target set at up to Ksh.100 billion, subject to regulatory approval. Proceeds will be ring-fenced for eligible Green, Blue and Social Projects spanning renewable energy, green buildings, clean transportation, sustainable water management, agriculture, the blue economy, affordable housing, and MSMEs, including women and youth-led enterprises.
The Framework has already earned a Sustainability Quality Score of 2, rated Very Good by Moody’s, and sets out a defined process for identifying, evaluating and selecting eligible projects.
KCB Group CEO Paul Russo described the move as a natural progression of two decades of work structuring financing solutions with economic and social impact, saying the framework was about bringing capital, purpose and accountability together while creating sustainable value for stakeholders.
“The launch of the Sustainability Bond Framework is a natural progression of two decades of structuring innovative financing solutions with meaningful economic and social impact. This is about bringing Capital, Purpose and Accountability, using finance as a force for good to create sustainable value for all our stakeholders,” said Russo at the launch, .
The framework is built around two distinct features, Use of Proceeds and Sustainability-Linked Bonds, giving the Group flexibility and credibility for future issuances as it embeds sustainability more deeply into its financial strategy.
Principal Secretary for Public Investments and Asset Management, Cyrell Wagunda Odede, said instruments of this nature would be critical in attracting capital and unlocking new financing opportunities as Kenya works to deepen its capital markets and expand funding for infrastructure, enterprise and climate action.
“The publication of the Sustainability Bond Framework by KCB Group is a step in the right direction as it complement Government’s broader commitment to diversifying Kenya’s sources of development financing. As we advance our climate and environmental agenda, partnerships with institutions such as KCB are critical in directing capital towards investments that promote environmental resilience, inclusive growth and a sustainable future for our country,” said PS Cyrell Wagunda.
Betsy Njagi, Principal Secretary for Blue Economy and Fisheries, added that the framework complements the government’s broader push to diversify Kenya’s development financing sources, noting that partnerships with institutions such as KCB remain central to directing capital toward environmental resilience and inclusive growth.
The milestone builds on a sustainability journey that dates back to 2008, when KCB formally adopted sustainability as a core business principle anchored on financial, economic, social and environmental pillars. The Group has since disbursed more than Ksh.187 billion in green loans since 2022, including Ksh.48.8 billion last year alone across renewable energy, sustainable agriculture, green buildings, clean transportation and water management projects in its regional markets.
