KCB Group Plc disbursed approximately $378 million in green loans last year as East Africa’s largest lender accelerated financing for renewable energy, climate-smart agriculture and other low-carbon investments while increasing scrutiny of environmental risks across its portfolio.
The Nairobi-based bank says it issued the funds in financing tied to environmentally sustainable projects spanning renewable energy, green buildings, clean transportation, water management and climate-related investments. Of that amount, KSh9.9 billion ($77 million) was independently verified as climate-eligible through the Climate Assessment for Financial Institutions (CAFI) framework.
Separately, KCB screened transactions worth KSh587.9 billion ($4.56 billion) under its Environmental and Social Due Diligence framework across Kenya, Uganda, Tanzania and Rwanda as it sought to align lending decisions with climate and sustainability targets.
The lender told Impact Newswire the effort helped push green financing to 25.84% of total lending in 2025, surpassing its strategic target of allocating one-quarter of lending to sustainable projects and improving from 21.6% in 2024.
The figures were disclosed in KCB’s 2025 Sustainability Report titled Transitioning Economies, which outlines the bank’s broader strategy of positioning sustainable finance as a driver of economic transformation across East Africa.
KCB Group CEO Paul Russo said the bank is integrating sustainability considerations into capital allocation and long-term business strategy.
“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 mobilise capital at scale, product innovation and accelerate the transition to a low-carbon and climate resilient economy throughout the region,” said Russo.
Beyond lending, KCB expanded environmental conservation efforts through its regional tree-planting program. The bank exceeded its 2025 target of planting 1.5 million trees, reaching more than 3.5 million trees through over 200 planting events conducted in partnership with 1,778 schools and other organizations.
The lender also increased investment in clean energy adoption within education institutions. Under its Learning Institutions Customer Value Proposition program, KCB financed cleaner cooking systems for 266 schools through KSh782.5 million ($6.1 million) in funding aimed at reducing dependence on traditional biomass fuels.
KCB continued to scale renewable energy deployment across its operations, with solar installations now operating in 16 branches including facilities in Maasai Mara, Wajir, Mandera, Watamu, Lamu, Loitoktok, Kakuma and Namanga, alongside its Karen Leadership Centre. The bank plans to extend solar power infrastructure to 30 additional branches this year.
The investments contributed to a 2% reduction in fuel and electricity consumption and an overall 13% reduction in group emissions, according to the report.
KCB also highlighted broader social impact initiatives. Through KCB Foundation programs, more than 265,300 jobs were supported while 16,549 young people received workforce readiness and skills development support.
An additional 38,635 youth-led enterprises participated in structured business support programs under the 2Jiajiri Young Africa Works initiative. Overall, KCB said it has supported 67,090 businesses as part of efforts to expand economic participation across the region.
The bank advanced gender-focused lending by disbursing KSh149 billion ($1.15 billion) to women-led businesses through its Female-Led and Made Enterprise program, part of a broader five-year commitment to unlock KSh250 billion ($1.94 billion) in financing for women entrepreneurs.
KCB also expanded financial inclusion among displaced populations, enabling 20,299 refugees to access formal banking services. Using UNHCR identification documentation, the bank extended KSh71.4 million ($553,000) in loans to refugee entrepreneurs.
The report marks KCB’s third sustainability disclosure to undergo limited assurance review. Prepared with reference to IFRS S1 and S2 standards and published alongside the lender’s 2025 Integrated Report, the filing reflects voluntary early adoption ahead of mandatory reporting requirements scheduled for 2027.
Stay ahead of the stories shaping our world. Subscribe to Impact Newswire for timely, curated insights on global tech, business, and innovation all in one place.
Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.
Got a story to share? Pitch it to us at info@impactnews-wire.com and reach the right audience worldwide
Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
Discover more from Impact Newswire
Subscribe to get the latest posts sent to your email.
