KCB Bank Kenya has secured a $96.9 million (Sh12.5 billion) financing facility from the Green Climate Fund (GCF) to scale climate-smart investments targeting small businesses and farmers.
The blended finance package covering concessional loans, guarantees and grants, will be deployed in the Climate Smart Technology (CST) plan to expand access to green solutions among underserved communities.
The funding will support adoption of solar-powered systems, clean cooking technologies, climate-smart agriculture, waste management and circular economy initiatives, and energy efficiency improvements.
KCB said about 60 per cent of the financing will go towards climate adaptation, including resilient agriculture and water management technologies, while 40 per cent will fund mitigation efforts such as renewable energy and efficiency solutions.
“This is a significant step in scaling climate finance for MSMEs and smallholder farmers, ensuring they are not left behind in the transition to a climate-resilient economy,” said KCB Group CEO Paul Russo.
The facility is expected to be deployed through flexible credit products, blended financing structures as well as digital lending platforms to reach vulnerable groups at scale in varied parts of the country.
This comes as Kenya faces mounting climate risks with over 80 per cent of the country classified as arid and semi-arid land, with recurring droughts and floods estimated to cost the economy up to 3 per cent of GDP annually.
With agriculture contributing about 26 per cent of GDP and employing the majority of the rural workforce, climate shocks continue to disrupt livelihoods, food systems and economic stability, particularly for smallholder farmers who rely heavily on rain-fed agriculture.
GCF intimated that the initiative has been designed to unlock private capital and reduce the risk of investing in climate-smart technologies.
“Access to finance remains one of the biggest barriers to climate action for MSMEs and farmers,” said GCF Director for Africa Catherine Koffman.
She added: “This investment helps bridge that gap while strengthening resilience and productivity.”
KCB Group has been expanding its green financing portfolio in recent years.
In 2025 alone, the bank assessed Sh578.3 billion in loans for environmental and social risks, pushing its cumulative assessment to over Sh1 trillion since 2020.
It also disbursed Sh50 billion in green loans, expanding its green portfolio to 25.8 per cent.
The latest financing aligns with Kenya’s National Climate Change Action Plan and its revised climate commitments, as it hastens efforts to transition towards a low-carbon and climate-resilient economy.
