KCB Group CEO, Paul Russo addressing the media during a past event. Photo/courtesy.
KCB Group has exceeded its green financing target after disbursing Sh48.8 billion to environmentally sustainable projects across East Africa, highlighting the growing role of climate-focused investments in the region’s economy.
According to the bank’s 2025 Sustainability Report, the funding supported projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management and other climate-smart sectors.
Of the amount disbursed, Sh9.9 billion was independently verified as climate-eligible through the Climate Assessment for Financial Institutions (CAFI) framework.
The lender also screened transactions worth Sh587.9 billion under its Environmental and Social Due Diligence (ESDD) framework across Kenya, Uganda, Tanzania and Rwanda, reinforcing sustainability considerations in its lending decisions.
The milestone enabled KCB to surpass its target of allocating 25% of its loan book to green projects. Green financing accounted for 25.84% of total lending in 2025, up from 21.6% in 2024.
KCB Group CEO Paul Russo said the bank is positioning sustainable finance as a key driver of economic growth and climate resilience across the region.
“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,” said Russo.
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The report signals the increasing importance of sustainable finance as banks respond to climate risks, investor expectations and evolving regulatory requirements.
Beyond financing, KCB expanded its environmental conservation efforts, surpassing its target of planting 1.5 million trees by planting more than 3.5 million trees in 2025. The initiative involved over 200 tree-planting events conducted in partnership with 1,778 schools and community organisations.
The Group also financed cleaner cooking systems for 266 schools through its Learning Institutions Customer Value Proposition programme. The initiative was supported by Sh782.5 million in financing and aims to reduce reliance on traditional biomass fuels.
KCB continued to scale up renewable energy adoption within its operations, with solar installations now operational in 16 branches, including Maasai Mara, Wajir, Mandera, Watamu, Lamu, Loitoktok, Kakuma and Namanga. The bank plans to extend solar power to 30 additional branches this year.
The renewable energy investments contributed to a 13% reduction in overall emissions and a 2% reduction in fuel and electricity consumption across the Group.
The report also highlights the bank’s social impact initiatives. Through programmes implemented by the KCB Foundation, more than 265,300 jobs were supported while 16,549 young people benefited from workforce readiness and skills development programmes.
Additionally, 38,635 youth-led businesses received support through the 2Jiajiri Young Africa Works programme, helping entrepreneurs build and scale sustainable enterprises.
KCB further advanced its women entrepreneurship agenda by disbursing Sh149 billion to women-led businesses through its Female-Led and Made Enterprise programme, part of a broader commitment to unlock Sh250 billion in financing for women entrepreneurs over five years.
The bank also deepened financial inclusion among displaced communities. More than 20,000 refugees accessed formal banking services while refugee-owned businesses received Sh71.4 million in loans to support enterprise growth and economic participation.
The sustainability report, which underwent a limited assurance review for the third consecutive year, was prepared in line with IFRS S1 and S2 sustainability disclosure standards. The publication places KCB among the early adopters of the reporting framework ahead of mandatory implementation in 2027.
