By October 2026, KCB Group plans to secure Sh100 billion as the initial phase of its five-year, Sh300 billion medium-term note initiative. Pending regulatory approval, this effort would stand as one of Kenya’s most significant corporate debt issuances.
The bank aims to list this first tranche on the Nairobi Securities Exchange by November, increasing its total outstanding corporate debt to approximately Sh205.3 billion.
KCB Group CEO Paul Russo has addressed skepticism about the Sh300 billion goal, asserting the bank’s ability to gather funds in both local and international markets. He emphasized that dividing the proceeds between Kenyan shillings and US dollars makes the target more feasible.
According to Maurice Opiyo, Managing Director of KCB Investment Bank, the notes will be issued in dual currencies. Russo added that splitting the funds between shillings and dollars simplifies what initially seems like a daunting objective.
This initiative is part of KCB’s broader sustainability bond framework, categorized into Green bonds, Blue bonds, and Sustainability bonds. These will fund projects in renewable energy, sustainable fisheries, affordable housing, and more.
The bond program follows KCB’s strong half-year results, with net earnings rising 14.5 percent to Sh36.07 billion, up from Sh19.52 billion in 2022. This performance, coupled with renewed investor interest in corporate debt, positions KCB favorably for its bond issuance.
KCB’s move aligns with a resurgence in corporate bond demand, which had waned after the failures of Chase Bank and Imperial Bank. Recent issuances, such as Safaricom’s green bond, drew Sh41 billion in bids against a Sh15 billion target, highlighting investor confidence.
KCB highlights its existing commitment to sustainable financing, having allocated over Sh187 billion in green loans since 2022, including Sh48.8 billion last year. These funds supported renewable energy, sustainable agriculture, and climate-smart projects, showing the bank’s readiness for the upcoming bond program.
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