KCB Bank Kenya has received approval for a $96.9 million (KShs. 12.5 billion) financing facility from the Green Climate Fund to accelerate climate-smart initiatives among Micro, Small and Medium Enterprises (MSMEs) and farmers across Kenya.
The funding, structured as a blended finance package of concessional loans, guarantees, and grants under the Climate Smart Technology (CST) programme, aims to empower vulnerable communities to adopt sustainable practices in energy, agriculture, and waste management.
Under the initiative, 350,000 trees will be planted, clean cooking solutions will be deployed, and climate-resilient agricultural technologies adopted, all contributing to a low-carbon economy. Approximately 60% of investments will focus on adaptation interventions such as water management and climate-smart agriculture, while 40% target mitigation through renewable energy and energy efficiency.
The programme also emphasizes gender inclusion and value-chain interventions, enabling underserved communities to access financing through flexible credit products, digital lending platforms, and blended finance structures.
KCB Group CEO Paul Russo said, “By targeting MSMEs and smallholder farmers, we are ensuring that no one is left behind in building a climate-resilient future. Our goal is to empower communities with the tools, technologies, and financing they need to thrive amid climate change threats.”
Catherine Koffman described the initiative as a breakthrough in addressing the financing gap for small businesses and farmers. She noted that the programme will crowd in private capital, de-risk climate-smart investments, and strengthen long-term economic resilience.
Kenya’s vulnerability to climate change is high, with over 80% of the country classified as arid and semi-arid, prone to droughts and flooding. Agriculture, which contributes 26% to GDP and employs 70% of the rural workforce, is particularly at risk, affecting livelihoods and food security.
The initiative aligns with Kenya’s National Climate Change Action Plan (NCCAP) III 2023 and updated Nationally Determined Contributions (NDC), reinforcing the country’s transition to a green and inclusive economy.
KCB’s climate action track record is robust, having assessed loans worth KShs. 578.3 billion for environmental and social risks in 2025, bringing cumulative assessments since 2020 to over KShs. 1 trillion. The bank also disbursed KShs. 50 billion in green loans last year, expanding its green portfolio from 15% to 25.84%, supporting energy transition, e-mobility, the blue economy, and climate adaptation initiatives.
This financing positions KCB as a key driver of Kenya’s climate-resilient growth, enabling MSMEs and smallholder farmers to adopt sustainable practices, strengthen productivity, and contribute to the country’s low-carbon development pathway.
