KCB Bank Kenya has secured $96.9 million (KShs. 12.5 billion) from the Green Climate Fund to support Micro, Small, and Medium Enterprises (MSMEs) and farmers in adopting climate-smart technologies across Kenya.
The blended finance initiative, under the Climate Smart Technology (CST) programme, combines concessional lending, guarantees, and grants to empower communities vulnerable to climate change.
The funding will support value-chain and gender-inclusive interventions, including solar-powered technologies, clean cooking solutions, climate-smart agriculture, waste management, circular economy initiatives, and energy efficiency projects.
About 60 percent of the investments will target climate adaptation such as resilient agriculture and water management, while 40 percent will focus on mitigation through renewable energy and energy efficiency improvements.
KCB will deliver financing through flexible credit products, mixed finance structures, and digital lending platforms, ensuring wide access for underserved populations.
Paul Russo emphasized that the initiative is designed to equip farmers and MSMEs with the tools, technologies, and financing needed to thrive amid climate challenges, leaving no community behind.
Catherine Koffman added that the project addresses one of the major barriers to climate action: access to finance for small businesses and farmers. She said GCF funding will crowd in private investment, de-risk climate-smart projects, and support long-term economic resilience.
Kenya faces acute climate vulnerability, with over 80 percent of its land classified as arid or semi-arid, frequent droughts and floods, and economic losses estimated at 3 percent of GDP annually.
With agriculture employing 70 percent of the rural workforce and contributing 26 percent to GDP, climate shocks threaten livelihoods and food security, making this financing timely and critical.
KCB Group continues to champion climate action and financial inclusion, assessing over KShs. 578.3 billion in loans for environmental and social risks in 2025, with a cumulative total exceeding KShs. 1 trillion since 2020 under its Environmental and Social Due Diligence process.
The bank also disbursed KShs. 50 billion in green loans last year, growing its green portfolio to 25.84 percent from 15 percent in 2023, supporting sustainable initiatives in the blue economy, e-mobility, and climate adaptation.
Through this partnership with GCF, KCB Bank Kenya aims to strengthen climate resilience, empower MSMEs and farmers, and drive inclusive, sustainable economic growth in the face of mounting climate challenges.
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