The Kenyan government has announced fresh efforts to boost green financing by leveraging public-private partnerships (PPPs) to support critical projects in sectors such as energy, infrastructure, and agriculture.
Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui has called on commercial banks and financial institutions to scale up lending to environmentally sustainable projects. His appeal comes amid mounting pressure to transition to a low-carbon economy and meet global climate goals.
In support of the initiative, the Central Bank of Kenya (CBK) has launched a green finance taxonomy policy that provides a standardized framework for identifying and classifying green investments. The policy is expected to reduce the cost of credit for green projects and increase transparency in climate-related financial flows.
“Kenya remains a leading recipient of green financing in Africa, accounting for nearly 50% of all inflows to the continent,” CS Kinyanjui noted, adding that the government is developing further regulations to attract more climate-conscious investors.
The green finance taxonomy mandates lenders to disclose details of their green loan portfolios and report on the environmental impact of their investments. This aligns with the country’s broader strategy to ensure green borrowers have greater access to affordable financing.
Stanbic Bank is among local financial institutions taking the lead. The bank now screens all loan applications above Ksh 130 million to assess the inclusion of green elements. In 2024, it issued more than Ksh 500 million in solar energy loans to businesses transitioning to cleaner energy sources, contributing to Kenya’s net-zero emissions goal.
As Kenya steps up its climate finance agenda, the synergy between the government and private sector is expected to accelerate the country’s shift to a sustainable and resilient economy.
Written By Rodney Mbua
