Global Green Growth Institute, Kenya Bankers sign MOU for integration of green financing

The agreement reached on September 3, 2026 establishes a framework for cooperation to accelerate the integration of environmental, climate, and sustainability considerations within Kenya's financial sector while mobilizing public and private capital for sustainable development.

The initiative comes as Kenya advances the implementation of its biodiversity commitments and works to unlock private sector participation in sustainable development financing.

Speaking during the signing ceremony, Ms. Nagnouma Kone, Manager for Africa Strategy and Partnerships and Head of Kenya Office at GGGI highlighted the need to bridge the disconnect between entrepreneurs seeking financing and financial institutions seeking investment-ready projects.

"For too long, entrepreneurs have said banks are not lending, while banks have said there are not enough bankable green projects. This partnership is about closing that gap. We are bringing together SMEs, financial institutions, and public sector actors to move beyond discussion and create real transactions that accelerate Kenya's green transition," said Ms. Kone.

She also noted that small and medium enterprises, particularly women-led businesses, face challenges accessing finance due to perceived risks, while commercial lenders frequently cite a shortage of bankable green projects.

Through the partnership, GGGI and KBA will work to strengthen dialogue between financial institutions, businesses, and government actors while supporting the development of sustainable finance solutions that respond to market realities.

She added that the collaboration will support efforts to de-risk green lending, strengthen the understanding of nature-positive investments, and assist businesses in meeting bankability requirements.

The partnership will also explore opportunities to advance sustainability-linked bonds, green loans, and other innovative financing instruments capable of mobilizing capital towards sustainable and biodiversity-positive investments.

On his part, Mr. Raimond Molenje, Chief Executive Officer of the Kenya Bankers Association, welcomed the collaboration as an important step toward strengthening the local sustainable finance ecosystem.

"Kenya's banking sector has a critical role to play in financing the country's sustainable development ambitions. This partnership provides an opportunity to strengthen market readiness, build institutional capacity, and support the development of practical financing solutions that can unlock investment into sustainable and green growth opportunities across the economy," said Mr. Molenje.

Under the agreement, GGGI and KBA will collaborate on strengthening sustainable finance policies and market practices, promoting green investment, building the capacity of financial institutions, supporting the development of bankable investment opportunities, and facilitating dialogue among key stakeholders across the financial sector and broader economy.

The partnership will also support joint technical assistance programmes, training initiatives, research, knowledge sharing, and investment facilitation efforts aimed at accelerating Kenya's transition towards a resilient, low-carbon, and inclusive economy.