KDC mobilises USD42mn for green financing, targets more climate capital
KDC has launched its first sustainability and green financing strategy with USD42 million already mobilised for green investments.
Nairobi, Kenya – Kenya is intensifying its efforts to mobilise funding for green businesses and climate-friendly investments as the government and development finance institutions strive to address a growing funding gap for sustainable economic development. At the forefront of this initiative is the Kenya Development Corporation (KDC), which has launched its first sustainability and green financing strategy, having already raised USD42 million for green investments, while actively pursuing additional capital through collaborations and international climate-financing institutions.
KDC Director General Norah Ratemo explained that the corporation is actively seeking accreditation with the Green Climate Fund (GCF) to bolster its capacity to secure resources. Their new green fund will offer both debt and equity financing to businesses aiming to adopt sustainable practices. Festus Ng’eno, the Principal Secretary of the Environment, Climate Change, and Forestry, emphasized that this move reflects a broader perspective on climate action, with sustainability increasingly being viewed as an economic priority.
“Sustainability strategy is no longer an environmental agenda. We are looking at it from the economic perspective,” Ng’eno stated.
Ratemo highlighted that KDC's initial USD42 million mobilisation will serve as the foundation for a broader fundraising campaign targeting both businesses that are already green and those seeking to transition to greener operations. The green fund will extend beyond traditional lending by providing equity to businesses that might be overly leveraged for additional debt.
This approach is particularly relevant as Kenya faces a substantial climate-financing shortfall, with an estimated annual requirement of about USD62 billion, of which only roughly 13% can currently be mobilised through the National Treasury.
Ng’eno welcomed KDC's strategy, noting that increased involvement from state corporations and the private sector would augment the resources available for climate action, while simultaneously supporting economic transformation. He also mentioned that KDC could pursue financing through other mechanisms such as the Green Climate Fund, Adaptation Fund, and the Global Environment Facility. Ng’eno stressed that stronger sustainability frameworks would position Kenya to access these vital resources.
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