KCB Bank Kenya has received approval for a $96.9 million (KShs. 12.5 billion) financing facility from the Green Climate Fund to accelerate green projects for Micro, Small, and Medium Enterprises (MSMEs) and farmers across Kenya.
The blended finance initiative—combining concessional lending, guarantees, and grants—forms part of the Climate Smart Technology (CST) programme, targeting the nation’s most vulnerable communities.
The facility will support value-chain and gender-inclusive interventions, including the adoption of solar-powered and clean cooking technologies, climate-smart agriculture, waste management, circular economy practices, and energy efficiency improvements.
The initiative is structured to enable communities to build resilience, improve productivity, and transition to low-carbon practices.
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About 60 percent of investments will focus on adaptation—particularly climate-resilient agriculture and water management—while 40 percent will target mitigation technologies such as renewable energy and energy efficiency solutions.
Through this program, KCB Bank Kenya will deploy flexible credit products, mixed finance structures, and digital lending platforms, ensuring access to underserved populations at scale. Paul Russo said the initiative ensures that MSMEs and smallholder farmers are empowered with tools, technologies, and financing needed to thrive despite climate change threats.
Catherine Koffman noted that the project addresses one of the toughest barriers to climate action: limited access to finance for small businesses and farmers. By crowding in private capital and de-risking climate-smart investments, GCF funding strengthens resilience, productivity, and long-term economic stability.
The approval comes as Kenya faces increasing vulnerability to climate change, with over 80 percent of its landmass classified as arid and semi-arid lands (ASALs).
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These regions experience frequent climate hazards, including prolonged droughts and flooding, causing economic losses estimated at 3 percent of GDP annually.
Agriculture, which contributes 26 percent to GDP and employs 70 percent of the rural workforce, is particularly exposed, leaving rural communities struggling with erratic weather, food insecurity, and limited access to climate-smart technologies.
KCB Group has made significant strides in climate action, financial inclusion, and community development, aligning with Kenya’s National Climate Change Action Plan III (2023) and the updated Nationally Determined Contribution (NDC).
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Last year, the bank assessed KShs. 578.3 billion in loans for environmental and social risks, bringing the cumulative total assessed since 2020 to over KShs. 1 trillion under its Environmental and Social Due Diligence (ESDD) framework.
Additionally, KCB disbursed KShs. 50 billion in green loans in 2025, growing its green portfolio to 25.84 percent from 15 percent in 2023, with support extended to initiatives in the blue economy, e-mobility, and climate change adaptation.
Through this $96.9 million GCF-backed facility, KCB Bank Kenya is poised to enhance climate resilience, secure livelihoods, and promote sustainable economic growth among Kenya’s most vulnerable communities, enabling them to adapt and thrive in a rapidly changing climate.
