From Left: KCB Group CEO, Paul Russo, Principal Secretary, State Department for Blue Economy and Fisheries, Betsy Njagi (centre) and Principal Secretary, State Department for Public Investments & Asset Management, Cyrell Wagunda Odede during the launch of the KCB Group Sustainability Framework
Kenya’s need for long-term financing is growing as the country seeks to expand infrastructure, create jobs, support businesses and respond to climate change.
Against this backdrop, KCB Group’s proposed KShs. 300 billion Medium Term Note (MTN) Programme could provide a significant new channel for funding projects with environmental and social benefits.
Speaking during the launch, KCB Group CEO Paul Russo said the framework builds on the Group’s two-decade effort to develop financing solutions that deliver economic and social impact.
“This is about bringing Capital, Purpose and Accountability and using finance as a force for good while creating sustainable value for all our stakeholders,” Russo said.
The programme, planned over five years, will have its first tranche targeted at up to KShs. 100 billion, subject to regulatory approvals.
More importantly, the financing is expected to be guided by KCB’s Sustainability Bond Framework, which sets out how money raised through eligible bonds can be allocated.
The framework focuses on Green, Blue and Social Projects. These include renewable energy, green buildings, clean transportation, sustainable water management, climate-smart agriculture and the blue economy.
On the social side, funding can support affordable housing, micro, small and medium enterprises (MSMEs), women and youth-led businesses, employment and livelihood creation.
KCB’s experience also provides some indication of the scale at which such financing can operate. The Group says it has disbursed more than KShs. 187 billion in green loans since 2022.
In 2025 alone, it provided KShs. 48.8 billion in green financing across its regional markets, supporting areas including renewable energy, sustainable agriculture, green buildings, clean transport and water management.
The framework has also received a Sustainability Quality Score of SQS 2, rated “Very Good”, from Moody’s.
While such an assessment does not guarantee that every financed project will deliver its intended impact, independent evaluation can strengthen confidence in how sustainability criteria are designed and applied.
The framework includes two approaches: Use of Proceeds and Sustainability-Linked Bonds. This gives KCB flexibility to structure future issuances around specific eligible projects or sustainability performance objectives.
For Kenya, the bigger question is whether instruments like this can help close the gap between sustainability ambitions and actual investment.
Climate resilience, clean energy and inclusive economic growth require substantial capital, while public resources alone are unlikely to meet the demand.
If implemented with strong reporting, credible project selection and measurable outcomes, the proposed programme could demonstrate how capital markets can support development beyond traditional infrastructure financing.
The opportunity, however, should be judged by what happens after the money is raised. The real measure of a sustainability bond is the quality of projects financed, the communities and businesses reached, and the environmental and economic outcomes that can be independently demonstrated.
With the first tranche potentially reaching KShs. 100 billion, KCB’s programme could become a significant test of whether sustainable finance can translate large pools of capital into practical solutions for Kenya’s climate, enterprise and social development needs.
