KCB Group is set to raise Sh100 billion by October 2026 in the opening tranche of a five-year, Sh300 billion medium-term note programme — a move that, once approved by regulators, would rank among the largest corporate debt-raising exercises undertaken in Kenya.

The lender expects to list the first tranche on the Nairobi Securities Exchange in November, a step that would push the bank’s total issued and outstanding corporate paper to roughly Sh205.3 billion.

Ambitious but “Achievable,” Says CEO

KCB Group Chief Executive Officer Paul Russo has dismissed concerns that the Sh300 billion target is overly aggressive, arguing the bank has sufficient capacity to mobilise funds across both local and foreign currency markets.


Russo noted that once the proceeds are split between shilling and dollar-denominated tranches, the scale of the programme becomes far more attainable than it first appears.

KCB Investment Bank Managing Director Maurice Opiyo said the notes will be issued in both Kenyan shillings and US dollars, with the currency mix likely to land somewhere between a 50:50 and 60:40 split — though the final structure will hinge on prevailing market conditions.

Green, Blue and Sustainability Bonds


The programme forms part of a broader sustainability bond framework unveiled by KCB this week, structured around three thematic categories:


• Green bonds — financing renewable energy, energy efficiency, green buildings, clean transport, sustainable forestry, waste management and water-related projects.

• Blue bonds — supporting marine and freshwater resource projects, including sustainable fisheries, aquaculture, low-emission maritime transport and water-quality infrastructure.


• Sustainability bonds — a hybrid category blending green and social objectives, including funding aligned with the Affordable Housing Programme, green-certified developer loans, and concessional refinancing through the Kenya Mortgage Refinance Company (KMRC).


The framework also targets micro, small and medium enterprises led by women and youth.


Strong Earnings Backdrop


The bond drive comes on the back of robust half-year performance, with KCB’s net earnings climbing 14.5 percent to Sh36.07 billion — continuing a steady upward trajectory from Sh19.52 billion in 2022.


Riding a Corporate Bond Revival


KCB’s initiative taps into renewed investor appetite for corporate debt, following a prolonged slump in issuance after the collapse of Chase Bank and Imperial Bank rattled confidence in the asset class.
Recent issues have drawn strong demand: Safaricom’s green bond attracted bids of Sh41 billion against a Sh15 billion target, while KMRC’s sustainability-linked bond pulled in Sh9 billion in bids against a Sh3 billion target.

KCB says the new framework builds on eco-financing activity already underway, having disbursed more than Sh187 billion in green loans since 2022 — including Sh48.8 billion last year alone — spanning renewable energy, sustainable agriculture, green buildings, clean transport, water management and climate-smart investments.