AfDB, KCB in $150m Deal to Scale Up Green Lending, Boost Trade Finance
NAIROBI, Kenya, Dec 11 - The African Development Bank Group (AfDB) has signed a $150 million (Sh19.3 bn) financing package with KCB Bank Kenya to expand Kenya breaking news | Kenya news today |..
✨ Key Highlights
The African Development Bank Group (AfDB) has finalized a $150 million (Sh19.3 billion) financing agreement with KCB Bank Kenya. This package aims to significantly boost KCB's green lending initiatives and reinforce its trade finance operations, addressing the growing capital demands in climate-aligned sectors.
- The facility includes $100 million (Sh12.9 billion) in subordinated debt to strengthen KCB's Tier II capital, supporting its goal to allocate at least 25 percent of its loan book to green projects by 2031.
- An additional $50 million (Sh6.46 billion) will serve as a transaction guarantee, providing up to 100 percent coverage to confirming banks against non-payment risks on KCB-issued letters of credit and other trade instruments.
- African Development Bank Director General for East Africa, Alex Mubiru, highlighted the partnership as a commitment to Africa’s green transition.
- KCB Bank Kenya Managing Director, Annastacia Kimtai, stated, "This partnership marks a significant milestone in our sustainability journey as it reinforces our commitment to scale up green lending."
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Kenya Enacts VASP Act for Crypto, Eases Tax Bottlenecks, and Secures $150m Green Lending Deal - December 2025
Kenya's new Virtual Assets Service Providers (VASP) Act, 2025, is boosting crypto interest, with the law aiming to regulate activities under the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK). In another regulatory move, the Kenya Revenue Authority (KRA) is enhancing collaboration with the private sector to streamline tax processes and create a predictable business environment. On the financing front, the African Development Bank Group (AfDB) has finalized a $150 million (Sh19.3 billion) financing agreement with KCB Bank Kenya. This package is designed to significantly boost KCB's green lending initiatives and reinforce its trade finance operations, addressing capital demands in climate-aligned sectors.
