KCB Disburses Sh48.8 Billion in Green Loans as Sustainable Financing Surpasses Target
KCB Group disbursed Sh48.8 billion in green loans in 2025, surpassing its sustainable finance target as the lender expanded support for climate-smart investments across East Africa.
According to the bank’s 2025 Sustainability Report, the financing supported projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management and other environmentally sustainable sectors.
Of the total amount disbursed, Sh9.9 billion was independently verified as climate-eligible using the Climate Assessment for Financial Institutions (CAFI) tool.
The bank also screened transactions worth Sh587.9 billion under its Environmental and Social Due Diligence framework across Kenya, Uganda, Tanzania and Rwanda to assess environmental and social risks associated with financing activities.
As a result, KCB increased the proportion of its lending portfolio allocated to green projects to 25.84 per cent in 2025, surpassing its strategic target of 25 per cent and improving from 21.6 per cent recorded in 2024.
KCB Group Chief Executive Officer Paul Russo said the lender is increasingly aligning its financing activities with climate resilience and sustainable economic growth.
“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,” said Russo.
The bank said it plans to deepen partnerships with global climate financiers, expand green financing products and mobilise additional capital to accelerate the transition to a low-carbon economy.
Beyond financing, KCB intensified its environmental conservation efforts, planting more than 3.5 million trees in 2025, exceeding its target of 1.5 million trees. The initiative involved more than 200 tree-planting activities conducted in partnership with 1,778 schools and other stakeholders.
The lender also extended Sh782.5 million to support 266 schools in adopting energy-efficient cooking technologies, helping reduce dependence on traditional biomass fuels and promoting cleaner cooking solutions.
KCB further expanded its renewable energy programme, with solar power installations now operational in 16 branches across the region, including Maasai Mara, Wajir, Mandera, Watamu, Lamu, Loitoktok, Kakuma and Namanga.
The bank plans to roll out solar energy systems to an additional 30 branches this year as part of its broader sustainability strategy.
According to the report, these environmental initiatives contributed to a 2 per cent reduction in fuel and electricity consumption and a 13 per cent decline in carbon emissions across the Group.
On the social impact front, KCB reported that programmes implemented through its foundation supported more than 265,300 jobs, while 16,549 young people benefited from workforce readiness and skills development initiatives.
The lender also supported 38,635 youth-led businesses through its 2Jiajiri Young Africa Works programme, contributing to a total of 67,090 enterprises supported by the Group.
In support of women entrepreneurship, KCB disbursed Sh149 billion to women-led businesses under its Female-Led and Made Enterprise programme. The initiative forms part of the bank’s commitment to unlock Sh250 billion in financing for women entrepreneurs over a five-year period.
The report further showed that KCB expanded financial inclusion among displaced communities by providing banking services to 20,299 refugees and disbursing Sh71.4 million in loans to refugee-owned businesses.
KCB noted that the 2025 Sustainability Report is its third to undergo an independent limited assurance review and has been prepared in line with the IFRS S1 and IFRS S2 sustainability reporting standards ahead of their mandatory adoption in 2027.