KCB Plans to Float a KSh300 billion 5-Year Bond in October

KCB Bank Group has announced plans to raise KSh 300.0 billion (US$2.32 billion) through a Medium-Term Sustainability Note Programme over the next 5 years.

The lender targets issuing green, blue & social bonds in raising this capital with the first tranche of KSh 100.0 billion (US$771.98 million) set to hit the markets in October 2026.

According to KCB Investment Bank Managing Director Maurice Opiyo, said that the plan is to have the issuance in both Kenya Shillings and US$ denomination, with a potential leaning towards 60:40 (US$: KSh) ratio.

KCB will launch the first tranche targeting KSh 100 billion

The lender’s five-year Medium Term Note programme has the first tranche targeting up to KSh 100billion, subject to regulatory approvals, after unveiling its Sustainability Bond Framework. This framework has already been reviewed by Moody’s.

Proceeds from the MTN program will be ring-fenced for eligible green, blue and social projects, including renewable energy, energy efficiency, green buildings, clean transport, climate-smart agriculture, affordable housing and MSMEs.

The framework allows proceeds to finance new projects by KCB or refinance existing eligible assets, with a refinancing look-back period of up to 24 months.

Speaking during the launch, KCB Group CEO Paul Russo said, “The launch of the Sustainability Bond Framework is a natural progression of the work the Group has been doing over the last two decades to structure innovative financing solutions and support investments that have a meaningful 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.”

KCB disbursement of Green Finance

In 2025, KCB Group disbursed KSh 48.8 billion in green financing across its regional markets, supporting environmentally sustainable projects in renewable energy, sustainable agriculture, green buildings, clean transport, water management and climate-smart investments.

The KCB Sustainability Bond Framework is structured around two distinct features i.e. use of the proceeds(UoP) and Sustainability-Linked Bonds. This allows for flexibility and credibility in future issuances. The dual approach further strengthens the Group’s long–term commitment to embedding sustainability at the core of its financial strategy.

The framework, which has received a Sustainability Quality Score(SQS) 2-Very Good from Moody’s, establishes a clear process for the identification, evaluation and selection of eligible projects.

This reinforces the lender’s strategic commitment to financing activities that support East Africa’s transition towards a low-carbon, climate-resilient and inclusive economy.

To date, KCB Group has continued to demonstrate that responsible banking can be a powerful driver of inclusive and sustainable development. These efforts have seen the lender disburse more than KSh 187 billion in green loans since 2022. This underscores the Group’s ability and intention to finance green transition and climate resilience.

Principal Secretary, State Department for Public Investments and Asset Management, Cyrell Wagunda Odede noted, “I commend KCB Group on this important initiative and for taking a deliberate step towards deepening sustainable finance in East Africa. As Kenya continues to deepen its capital markets and expand the pool of financing available for infrastructure, enterprise, climate action and other development priorities, innovative instruments such as sustainable bonds will be critical in attracting capital and unlocking new opportunities.

The achievement is a continuation of a long-standing sustainable journey by the KCB Group that begun in 2008 when the lender formally adopted sustainability as a way of doing business, anchored on the four pillars of Financial Economic, social and Environmental sustainability.

Principal Secretary, State Department for Blue Economy and Fisheries, Betsy Njagi noted, “The publication of the Sustainability Bond Framework by KCNB Group is a step in the right direction as it complements the 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.”

ALSO READ:KCB Group H1 2026 Net Profit Grows 14% to KSh 36.9 billion