KCB Group Plc says it disbursed KSh48.8 billion in green financing in 2025 to support projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management and climate-smart investments. The lender also screened KSh587.9 billion worth of transactions under its Environmental and Social Due Diligence framework across Kenya, Uganda, Tanzania and Rwanda, according to its 2025 Sustainability Report.

KCB said KSh9.9 billion of the green financing was independently verified as climate-eligible using the Climate Assessment for Financial Institutions (CAFI) tool. The bank added that the screening and lending activity helped it surpass a strategic target of allocating 25% of total lending to green projects, reaching 25.84% in 2025, up from 21.6% in 2024.

The disclosures are contained in the 2025 KCB Group Sustainability Report themed Transitioning Economies, which KCB said was published alongside its 2025 Integrated Report.

For Kenya’s banking sector, the figures add to a growing focus on sustainable finance and climate-risk management, driven by investor expectations, shifting regulation, and demand for capital to fund clean energy and climate adaptation projects. KCB’s footprint in multiple East African markets also means its screening framework can influence risk assessment practices for cross-border lending and large transaction volumes.

Paul Russo, KCB Group Chief Executive Officer, said the lender is aligning financing decisions and business strategy to support climate resilience and sustainable enterprise growth across its markets. “KCB seeks to be a bigger player in shaping a robust and sustainable financial ecosystem throughout East Africa by continuously developing tailored green financing solutions for MSMEs, households, and corporates in order to support the adoption of sustainable practices across key sectors,” Russo said.

KCB also reported progress on operational sustainability and social impact initiatives. It said it exceeded its 2025 tree-planting target of 1.5 million, planting more than 3.5 million trees in 2025 through more than 200 regionwide events in collaboration with 1,778 schools and other partners.

In the education sector, KCB said it supported 266 schools to adopt cleaner cooking systems under its Learning Institutions Customer Value Proposition, backed by KSh782.5 million in financing, aimed at reducing reliance on traditional biomass fuels.

On branch operations, KCB said solar installations were operational in 16 branches across the group, including Maasai Mara, Wajir, Mandera, Watamu, Lamu, Loitoktok, Kakuma and Namanga, as well as the Karen Leadership Centre. The lender said it plans to expand solar power to 30 additional branches in 2026.

KCB attributed a 2% reduction in resource use for fuel and electricity to these efforts, contributing to an overall 13% reduction in emissions across the group.

Through KCB Foundation programmes, the group said over 265,300 jobs were supported, while 16,549 youth benefited from workforce readiness and skills development initiatives. It also said 38,635 youth-led businesses received business development support under the 2Jiajiri Young Africa Works programme, and that it has supported a total of 67,090 businesses.

On inclusive finance, KCB said it disbursed KSh149 billion to women-led businesses through its Female-Led and Made Enterprise (FLME) programme, as part of a five-year commitment to unlock KSh250 billion in financing for women entrepreneurs and enterprises. The group also said 20,299 refugees gained access to formal banking services and that it disbursed KSh71.4 million in loans to refugee entrepreneurs, leveraging UNHCR identification documentation.

KCB said the 2025 sustainability report is its third to undergo a limited assurance review and was prepared in reference to IFRS S1 and S2 Standards, as part of what it described as early voluntary adoption ahead of a mandatory deadline set for the 2027 reporting period.

Looking ahead, the lender’s planned rollout of solar to additional branches and continued expansion of green lending will be watched as banks across Kenya and the region face pressure to demonstrate measurable progress on climate risk, sustainable finance allocation and disclosure standards.

KCB Foundation has partnered with Hivos, the Kenya Private Sector Alliance (KEPSA), Somo and United States International University-Africa (USIU-Africa) to launch the European Union-funded “Tujenge Pamoja” initiative aimed at accelerating Kenya’s transition to a circular green economy.

The programme was launched in Nairobi and will be implemented under the EU SWITCH Africa Green Programme, according to a statement from the partners. It seeks to shift enterprises away from the linear “take–make–dispose” model toward circular approaches anchored on repair, reuse, recycling and resource efficiency.

Under the initiative, the partners said the programme will support 3,200 Micro, Small and Medium Enterprises (MSMEs) to adopt sustainable and commercially viable circular business models. It also aims to strengthen 40 Business Support Organizations (BSOs) as well as Technical and Vocational Education and Training (TVET) institutions to serve as innovation and enterprise development hubs across the country.

The launch comes as Kenya continues to face rising waste management and climate pressures, while MSMEs remain central to employment and economic activity. Circular economy programmes are increasingly being positioned by development partners and private sector institutions as a way to reduce waste while opening new opportunities in recycling, green manufacturing and sustainable services.

Mendi Njonjo, Director at KCB Foundation, said the programme is intended to strengthen MSMEs through financing and skills. “This programme is about economic resilience, dignity and opportunity for millions of Kenyans whose livelihoods depend on MSMEs. By empowering small businesses with green financing, innovation, and skills, we are building enterprises that can compete, create jobs, and drive Kenya’s transition to a more inclusive and circular economy,” Njonjo said during the Nairobi launch.

Henriette Geiger, European Union Ambassador to Kenya, said the shift could unlock economic opportunities alongside environmental gains. “The transition to a circular economy is not only an environmental imperative, but also a major economic opportunity for Kenya. Through ‘Tujenge Pamoja’, we are strengthening innovation, supporting MSMEs, creating green jobs, and promoting inclusive growth that leaves no one behind,” Geiger said.

According to the partners, the programme also aims to create green jobs—particularly for women and youth—reduce waste streams and greenhouse gas emissions, and improve access to green financing through catalytic funding mechanisms to help enterprises scale environmentally responsible solutions. The initiative includes a Gender Equality and Social Inclusion (GESI) focus that prioritises women-led, youth-led and marginalised enterprises.

Key value chains targeted include plastics and packaging, organic waste management through composting and biogas solutions, and sustainable textiles, the statement said.

For Kenya’s business landscape, the initiative signals continued momentum in linking MSME support to climate and resource-efficiency outcomes, with potential downstream effects across waste management, manufacturing inputs and consumer goods. By strengthening business support organisations and TVET institutions, the programme could also influence workforce skills and the availability of advisory services for firms shifting to circular models.

The partners said the initiative aligns with Kenya Vision 2030, the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement, and the Sustainable Development Goals—particularly SDG 8 on decent work and economic growth, SDG 12 on responsible consumption and production, and SDG 13 on climate action. Next steps will include rolling out enterprise support and capacity-building activities through participating organisations and training institutions.