Kenyan banks have taken a big step in Africa’s journey toward a greener future after signing an agreement in Addis Ababa, Ethiopia, to help raise US$100 billion for green industrialisation. The deal, brings together financial institutions from across the continent to support clean energy, sustainable industries, and climate-smart projects.
For Kenya, this commitment builds on progress already made at home. KCB Group, for instance, has pledged to allocate a large share of its lending portfolio to green projects, while Equity Bank has been financing clean energy solutions like solar kits and efficient cookstoves for households and small businesses. Cooperative Bank has been investing in climate-smart agriculture and offering loans for renewable energy, supporting farmers and rural communities to adapt to climate change.
By joining the Addis Ababa agreement, these banks and others are promising to channel even more money into renewable energy projects—especially geothermal, wind, and solar power, where Kenya is already a continental leader. Today, more than 80 percent of Kenya’s electricity already comes from renewable sources, and the banks’ involvement will help scale this success even further.
The pact also means Kenyan banks will apply stricter environmental and social standards before financing big industries. This ensures that new factories, transport systems, and infrastructure projects are not only profitable but also environmentally safe and beneficial to communities. At the same time, banks will design special financial products to support small and medium-sized businesses working in recycling, green farming, clean cooking, and conservation.
Another important part of the Addis Ababa agreement is carbon trading. With Kenya already piloting carbon credit projects in forests and renewable energy, banks are expected to create financing models that allow communities and industries to benefit from selling carbon credits on international markets.
This $100 billion initiative is about more than money—it’s about building resilience against climate change. For Kenya, where droughts, floods, and other climate shocks affect millions, the active participation of local banks shows that the financial sector is ready to play its part. By signing this agreement, Kenyan banks are making it clear that they see green growth as the future—not just for business, but for the country and the continent.
