Regional lender KCB Group disbursed KES 53.2 billion in green loans, growing its green portfolio to 21.32 percent last year from 15 percent in 2023.

According to the bank's 2024 KCB Group Sustainability Report, KCB Group assessed loans valued at KES578.3 billion for environmental and social risks last year, bringing the total assessed since 2020 to over KES2.5 trillion under the Group’s Environmental and Social Due Diligence (ESDD) process. 

KCB Group CEO said the financing was extended to initiatives that seek to foster energy transition, including enterprises under blue economy, e-mobility, and climate change adaptation. 

Of the KES53.2 billion, nearly half, or KES24.1 billion has been verified using the Climate Assessment for Financial Institutions (CAFI) reporting tool, further enhancing the lender's objectives to enhance transparency and credibility in green financing.

Special interests’ groups

During the year under review, KCB Group allocated 7.5 percent of its supplier contracts, totaling KES913 million to businesses owned by special interests’ groups such as women, youth and persons living with disabilities.

“We committed to further aligning its interests with partner institutions to bolster economic development for the greater good for all. The conversation today must be aligned to how we safeguard the Planet and People even as we pursue profits," said KCB Group CEO, Paul Russo.

He added: “The private sector has the opportunity, the manpower and the assets to enable our communities to thrive. While we are committed to making a positive impact, we have learned that sustainable practices should also be economically viable in the long run."

Last year, KCB Bank Kenya secured a KES69 million Project Preparatory Facility from the Green Climate Fund. This is a critical step in our broader pursuit of KES15.5 billion in funding to advance our sustainability agenda and positively impacting the lives of over 100,000 micro, small and medium enterprises. 

KCB Group is actively reducing its carbon footprint and improving operational efficiency, as evidenced by a 4 percent reduction in overall resource consumption. Through targeted conservation measures, the Group has offset a carbon equivalent of 1.3 metric tonnes of carbon equivalent. This success was largely driven by the planting and growing of 1,386,203 trees.

Catalyze innovation

“For decades now, the financial sector has been hailed as an enabler of human progress. In today’s context, it has become much more than capital flow, it is a lifeline for sustainable livelihoods. When thoughtfully directed, finance can help farmers adopt climatesmart agriculture, empower small and medium enterprises to scale, enable women and youth to unlock their entrepreneurial potential, and catalyze innovation in renewable energy and green infrastructure. I am glad to see KCB Group continues to support green financing and has so far supported KES160 billion worth of green projects," said Dr. Festus Ng’eno, PS, State Department for Environment and Climate.

KCB Sustainability report has been prepared in reference to the IFRS S1 and S2 Standards, demonstrating the Group’s voluntary early adoption ahead of the mandatory deadline of 2027 set by the International Sustainability Standards Board (ISSB).

Beyond its own operations, the Group is addressing its indirect environmental impact by calculating its financed emissions for three key sectors: Motor Vehicle, Commercial Real Estate, and Business Loans. 

“We need more and more businesses to adopt integrated thinking, where economic growth goes hand in hand with environmental integrity and social inclusion. When institutions publicly share their progress, their gaps, and their commitments, they raise the bar for the entire sector. This is the culture we want to nurture across all financial institutions in Kenya where transparency drives trust, and trust drives transformation,” said Mr. Raimond Molenje, CEO, Kenya Bankers Association.

Through the KCB Foundation enterprise development programme, 2Jiajiri a total of KES2.58 billion was disbursed as loans to 4,000 youth-owned MSMEs, 38 percent of which were women-led. 

At the same time, 9,699 youths were equipped with critical business skills, supporting a total of 37,078 business, resulting in the creation of over 60,686 jobs and fostering a new generation of self-reliant business owners. 

The bank’s commitment also extends to increasing livestock productivity for Farmer Producing Organisations in Kenya’s ASAL counties through Mifugo ni Mali Programme which saw the uplifting of 1,119 poultry farmers and 913 blue economy entrepreneurs with market linkages and extension services.

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