KCB Group Plc has ramped up its commitment to sustainable finance by disbursing KSh 48.8 billion in green loans to support environmentally friendly projects across East Africa.
The financing targets renewable energy, sustainable agriculture, green buildings, clean transport, water management, and climate-smart investments.
Overall, this reflects the bank’s growing focus on climate action and inclusive growth.
Speaking on the progress, KCB Group CEO, Paul Russo noted that the bank is intentionally aligning its financing decisions with its broader business strategy. This alignment is aimed at supporting climate resilience and sustainable enterprise growth.
He further noted that this approach is a catalyst for long-term economic prosperity, environmental stewardship, and inclusive development across the markets where the bank operates.
“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.
“This will be enabled through strengthened partnerships with global climate financiers to mobilize capital at scale, product innovation and accelerate the transition to a low-carbon and climate resilient economy throughout the region,” said Russo.
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KCB Green Financing and Risk Screening
During the reporting period, the Group channelled financing into a range of environmentally sustainable projects across key sectors.
In addition, KSh 9.9 billion of this portfolio was independently verified as climate-eligible using the Climate Assessment for Financial Institutions (CAFI) tool.
This verification strengthened transparency and improved accountability in the bank’s green lending framework.
At the same time, the Group screened KSh 587.9 billion in transactions under its Environmental and Social Due Diligence framework.
This process covered operations across Kenya, Uganda, Tanzania, and Rwanda and reinforced the bank’s commitment to responsible lending and a low-carbon transition.
As a result, the Group surpassed its strategic target of allocating 25% of total lending to green projects.
It reached 25.84% in 2025, up from 21.6% in 2024, marking a significant milestone in its sustainability journey.
Sustainability Strategy and Reporting
These disclosures are contained in the 2025 KCB Group Sustainability Report themed “Transitioning Economies.”
The report highlights the Group’s focus on positioning sustainable finance as a driver of inclusive economic transformation across East Africa.
It also reflects the bank’s growing integration of environmental, social, and governance considerations into its core strategy and operations.
Environmental Conservation: Tree Planting Campaign
Beyond financing, KCB Group continued its environmental conservation initiatives through an extensive tree-growing campaign.
This initiative plays a key role in supporting Kenya’s national climate action agenda and ecosystem restoration efforts.
In 2025, the group exceeded its target of 1.5 million trees and planted more than 3.5 million trees.
This achievement was made possible through over 200 tree-planting events held across the region.
These activities were carried out in collaboration with 1,778 schools and various partners, strengthening community participation in environmental restoration.
Clean Energy Expansion in Schools and Branches
The Group also advanced clean energy adoption, particularly in the education sector.
Through the Learning Institutions Customer Value Proposition (CVP), KCB supported 266 schools in adopting cleaner cooking systems.
This initiative was backed by KSh 782.5 million in financing and is helping reduce reliance on traditional biomass fuels.
In addition, KCB expanded its solar energy programme across its branches. Solar installations are now operational in 16 branches, including Maasai Mara, Wajir, Mandera, Watamu, Lamu, Loitoktok, Kakuma, Namanga, and the Karen Leadership Centre.
The group plans to extend solar power to 30 additional branches, further accelerating its shift toward renewable energy.
Emissions Reduction and Operational Efficiency
As a result of these sustainability initiatives, KCB recorded a 2% reduction in fuel and electricity consumption.
Overall, the group achieved a 13% reduction in emissions. This highlights its continued focus on operational efficiency and environmental sustainability.
Youth Empowerment and Job Creation
Through its foundation programmes, KCB supported over 265,300 jobs across its markets.
In addition, 16,549 youth benefited from workforce readiness and skills development initiatives designed to enhance employability.
Furthermore, 38,635 youth-led businesses received structured support under the 2Jiajiri Young Africa Works programme. These efforts helped strengthen entrepreneurship and livelihood creation.
Altogether, the Group has supported 67,090 businesses, reinforcing its commitment to inclusive economic transformation and community empowerment.
Inclusive Finance for Women and Refugees
KCB also advanced financial inclusion by disbursing KSh 149 billion to women-led businesses under the Female-Led and Made Enterprise (FLME) programme.
This forms part of a broader five-year commitment to unlock KSh 250 billion in financing for women entrepreneurs and enterprises.
In addition, 20,299 refugees gained access to formal banking services. Leveraging UNHCR identification systems, KCB disbursed KSh 71.4 million in loans to refugee entrepreneurs.
This support has enabled business growth, economic participation, and stronger community integration.
Sustainability Reporting and Global Standards
Finally, the report marks the Group’s third sustainability report to undergo limited assurance review.
It is prepared in reference to IFRS S1 and S2 standards and published alongside the 2025 Integrated Report.
This demonstrates KCB’s voluntary early adoption of global sustainability reporting standards ahead of the mandatory 2027 deadline.
