Banks have exceeded their annual lending target to Micro, Small and Medium Enterprises (MSMEs) by 2 per cent, disbursing Sh153 billion against a target of Sh150 billion.
Kenya Bankers Association (KBA) Chief Executive Officer Raimond Molenje made the announcement during the launch of the Nature Positive Financing Assessment Report, reiterating the sector’s commitment to funding nature-related enterprises to build a resilient green economy.
“From a macro-level perspective, we are doing well in the economy. We promised to support MSMEs with Sh150bn every year for the next year and I am happy to report that we have surpassed this target to issue out Sh153bn which I hope will be sustained in the remaining months of the year,” said Molenje.
The report identifies nature-related investment opportunities in Kenya and outlines ways to advance sustainable financing models. It highlights tools such as green bonds, blended finance, and de-risking mechanisms.
Jointly commissioned by KBA, the World Wide Fund for Nature-Kenya (WWF-Kenya) and the German Corporation for International Cooperation (GIZ), the study estimates that manufacturing, water resource management, environmental services and agriculture could together unlock nature-related financing opportunities worth Sh19.4 trillion over the next 5–10 years.
These sectors are seen as the most promising for nature-positive investments.
Molenje emphasised that the findings will guide banks in supporting Kenya’s sustainable growth agenda, tackling biodiversity loss, and enhancing climate resilience.
He added that they will also help financial institutions align with the Green Economy Strategy, National Biodiversity Strategies and Action Plans (NBSAPs) and other climate-related policies.
“As we configure our survival and the survival of our day-to-day business operations, we aim to integrate the existing opportunities in the economy with nature-financing to sustain this growth as we aim to attain the global target of full biodiversity recovery by the year 2050,” Molenje said.
The launch also featured the unveiling of KBA’s Centre for Sustainable Finance and Enterprise Development (CSFED), which will drive industry efforts in sustainable value creation and environmental stewardship.
The centre is expected to support MSME transformation through capacity building while improving access to finance.
Molenje described the centre as a key driver of enterprise growth and financial system greening.
“We are committed to supporting the industry in advancing the sustainable finance agenda in the country while also promoting financial inclusion for underserved segments, and enhancing MSMEs’ access to affordable finance,” he said.
WWF-Kenya CEO Mohamed Awer noted that Kenya’s prosperity is closely tied to nature-based sectors such as agriculture, tourism, forestry and fisheries, which account for about 42 per cent of GDP.
He called for greater collaboration between the financial sector and players in nature-driven industries to scale up nature-financing.
“This report showcases the intersectional role the financial sector plays in driving a nature-positive economy and how we can close the biodiversity finance gap. Together, we can continue to chart a transformative pathway to economic resilience, climate stability, and inclusive growth for people and the planet,” said Awer.
