KCB Group has unveiled its Sustainability Bond Framework – Use of Proceeds, marking a significant step in the Group’s ambition to mobilize long-term capital towards projects and activities that deliver positive environmental and social outcomes.
Speaking during the launch, KCB Group CEO Paul Russo said the Framework builds on KCB’s two-decade sustainability journey, leveraging innovative finance to drive positive economic and social impact.
“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.” said Paul.
The Framework which 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.
In addition, it reinforces the bank’s strategic commitment to financing activities that support East Africa’s transition towards a low-carbon, climate-resilient and inclusive economy.
Framework Sets Stage for KSh300 Billion MTN Programme
The milestone lays the groundwork for the planned issuance of KShs. 300 billion Medium Term Note (MTN) Programme over a period of five years with the first tranche target set at up to KShs. 100 billion.
However, the transaction remains subject to the necessary regulatory approvals.
Specifically, proceeds raised through this Bond will be ring-fenced and allocated to eligible Green, Blue and Social Projects.
These include renewable energy, green buildings, clean transportation, sustainable water management, agriculture, blue economy, affordable housing, Mesmer, women and youth-led enterprises and initiatives that support employment and livelihood creation.
Furthermore, the framework is structured around two distinct features i.e., Use of Proceeds (UoP) and Sustainability-Linked Bonds allowing for flexibility and credibility in future issuances.
Ultimately, this dual approach further strengthens the Group’s long-term commitment to embedding sustainability at the core of its financial strategy.
Read More: KCB Disburses KSh 48.8bn in Green Loans to Boost Sustainable Finance Impact
Government Backs Sustainable Finance Initiative
The initiative has also received support from the Government, with Principal Secretary (PS), State Department for Public Investments & Asset Management, Cyrell Wagunda Odede, commending KCB Group for taking a deliberate step towards deepening sustainable finance in East Africa.
“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.” Cyrell noted.
The achievement is a continuation of a long-standing sustainability journey by the Group that began in 2008 when KCB formally adopted sustainability as a way of doing business, anchored on the four pillars of Financial, Economic, Social and Environmental sustainability.
Supporting Climate and Blue Economy Goals
Similarly, PS, State Department for Blue Economy and Fisheries, Betsy Njagi, noted that the Framework complements the government’s broader commitment to diversifying Kenya’s sources of development financing.
“The publication of the Sustainability Bond Framework by KCB Group is a step in the right direction as it complement Government’s broader commitment to diversifying Kenya’s sources of development financing.” Betsy noted.
At the same time, she pointed out that the partnership underscores the critical role of collaboration in advancing environmental resilience, inclusive growth and a sustainable future for the country.
“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.” The PS said.
KSh187 Billion in Green Financing
KCB has disbursed more than KSh187 billion in green loans since 2022, highlighting the Group’s growing role in financing the green transition and strengthening climate resilience.
In 2025 alone, the Group disbursed KSh48.8 billion in green financing across its regional markets, supporting environmentally sustainable projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management and climate-smart investments.
