KCB bond framework adds blue economy financing, gets Moody’s “Very Good” rating
KCB Group’s newly launched Sustainability Bond Framework includes a dedicated Blue economy financing category, a first among Kenyan bank bond frameworks, alongside an independent quality rating from Moody’s.
The framework, unveiled on Wednesday at the KCB Leadership Centre in Karen, will underpin a Medium-Term Note Programme of up to KShs 300 billion ($2.3 billion) over five years, subject to regulatory approval and market conditions.
Most sustainability bond frameworks issued by Kenyan lenders to date have been structured around Green and Social categories. KCB’s framework adds a third, dedicated Blue pillar targeting the resilience of marine, coastal and freshwater ecosystems.
Principal Secretary for the State Department for Blue Economy and Fisheries Betsy Njagi attended the launch, underscoring the government’s interest in the sector as a distinct financing priority.
KCB Group CEO Paul Russo said the Blue component will support projects designed to improve the resilience of coastal and freshwater communities.
It sits alongside the bank’s Green financing lines for renewable energy, energy-efficient buildings, clean transportation, sustainable agriculture and water management, and its Social financing for affordable housing and support for MSMEs, women- and youth-led enterprises.
KCB subjected the framework to independent review by Moody’s, which assigned it a Sustainability Quality Score of 2, rated “Very Good.”
Such scores are used by investors to assess how closely a framework’s governance, project selection and reporting processes align with international sustainable finance principles. The rating does not reflect the issuer’s underlying creditworthiness.
A “Very Good” score signals strong, though not maximal, alignment with best practice. It is intended to reassure bond investors that proceeds will be tracked and reported against the environmental and social outcomes KCB has committed to.
Russo said the external validation reinforces “transparency, accountability and alignment with global market standards.”
The framework builds on KCB’s sustainability record, including its 2020 accreditation by the Green Climate Fund, a first for a Kenyan bank, and its 2021 commitment to Net Zero by 2050 under the Net-Zero Banking Alliance.
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