BUSINESS

KCB Group Disburses KSh 48.8 Billion Green Financing Loans

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KCB Group green financing loans
KCB Group Finance Director, Lawrence Kimathi (left), Group Chairman, Dr Joseph Kinyua and Group CEO, Mr Paul Russo, share a light moment during a past event. (Photo: PR Handout)
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KCB Group Plc disbursed Ksh 48.8 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, Ksh 9.9 billion was independently verified as climate-eligible using the Climate Assessment for Financial Institutions (CAFI) tool.

At the same time, KCB Group screened Ksh 587.9 billion worth of transactions under its Environmental and Social Due Diligence framework covering operations across Kenya, Uganda, Tanzania and Rwanda as part of its commitment to accelerating the transition towards a low-carbon economy. The milestone enabled the Group to surpass its strategic target of allocating 25% of total lending to green projects, reaching 25.84% in 2025, up from 21.6% in 2024.

The disclosures are contained in the 2025 KCB Group Sustainability Report “Transitioning Economies” marking a defining moment in its strategic journey to position sustainable finance as a driver of inclusive economic transformation across East Africa. The report marks the lender’s third sustainability report to undergo a limited assurance review.

KCB Group CEO, Mr Paul Russo, noted that KCB  is 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.

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“KCB seeks 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 in order to support the adoption of sustainable practices across key sectors,” said Russo.

Beyond financing, the Group continued to invest in practical environmental conservation initiatives through the ongoing tree growing campaign. In 2025, the Bank surpassed its 2025 target of 1.5 million trees to plant 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.

The Group also made significant strides in advancing clean energy, particularly within the education sector through the Learning Institutions Customer Value Proposition (CVP) where the Bank supported 266 schools in adopting cleaner cooking systems, backed by Ksh 782.5 million in financing, accelerating the transition away from traditional biomass fuels.

During the year, KCB also scaled its solarization agenda with installations now operational in 16 branches across the Group. Some of the branches benefiting from the initiative include Maasai Mara, Wajir, Mandera, Watamu, Lamu, Loitoktok, Kakuma, and Namanga, as well as the Karen Leadership Centre. The Group plans to expand solar power to 30 additional branches this year, further accelerating its shift toward cleaner energy sources.

As a result, KCB registered a 2% reduction in resource use for fuel and electricity, contributing to an overall 13% reduction in emissions across the Group. This highlights the Group’s continued focus on environmental sustainability through renewable energy adoption and operational efficiency initiatives aimed at reducing its carbon footprint and supporting the transition toward cleaner energy sources.

Next >> Airtel Africa Invests $6.2 Million in Sustainable Projects

Written by
BT Correspondent

editor [at] businesstoday.co.ke

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