Kenya’s banking sector has gone beyond its annual target for lending to Micro, Small, and Medium Enterprises (MSMEs), disbursing Sh153 billion against the planned Sh150 billion. Beyond this achievement, banks are now channeling more resources toward nature-positive enterprises, aligning finance with efforts to build a resilient green economy.
The announcement came during the launch of the Nature Positive Financing Assessment Report, which revealed that Kenya’s agriculture, manufacturing, water resource management, and environmental services sectors hold combined nature-related investment opportunities worth Sh19.4 trillion (USD 100–150 billion) over the next five to ten years. The report underscores the potential of these sectors to drive sustainable economic growth while combating biodiversity loss and climate change.
Kenya Bankers Association (KBA) Chief Executive Officer Raimond Molenje said the industry is determined to integrate nature finance into its lending portfolio. “We are pleased to have surpassed our annual MSME lending target, reaching Sh153 billion. Beyond this milestone, our focus is on aligning financing with nature-positive enterprises that build resilience and accelerate Kenya’s green economy journey. By integrating biodiversity recovery and climate stability into financial systems, banks can secure both economic growth and sustainability,” he said.
Prepared by Rebel in partnership with KBA, WWF-Kenya, and GIZ, the study highlights the role of innovative financial tools such as green bonds, blended finance, and de-risking mechanisms in unlocking green investment opportunities. Agriculture emerged as the most relevant sector for nature-positive outcomes, with immediate financing needs of USD 500 million expected to rise to USD 2 billion in the next two years. Wildlife conservation requires long-term financing of up to USD 1 billion, while sustainable manufacturing presents opportunities valued between USD 20 and 30 billion.
WWF-Kenya Chief Executive Officer Mohamed Awer emphasized that Kenya’s prosperity is deeply tied to nature, with sectors such as agriculture, tourism, forestry, and fisheries contributing 42 percent of GDP. He noted that the financial sector plays a critical role in closing the biodiversity finance gap, strengthening climate resilience, and unlocking inclusive green growth.
At the same event, KBA launched the Centre for Sustainable Finance and Enterprise Development (CSFED), an industry hub designed to accelerate MSME transformation and foster sustainable finance practices. Developed in partnership with WWF-Kenya, GIZ, and IUCN, the Centre will support banks in greening the financial system while promoting financial inclusion and building enterprise capacity for climate-smart practices. According to Molenje, the Centre will provide a platform for banks and partners to co-create solutions that deliver lasting value for people, nature, and the economy.
Maren Kneller, Head of Development Cooperation at the Embassy of the Federal Republic of Germany, added that the report identifies concrete opportunities in ecotourism, agroforestry, sustainable timber, and forest carbon projects. She noted that the findings provide a roadmap for financial institutions and investors eager to scale nature-based solutions in Kenya.
The study concludes that for Kenya to fully tap into its Sh19 trillion green investment potential, the country needs a stronger policy environment, improved data on nature-related opportunities, and enhanced technical expertise within the financial sector. With the momentum of surpassing lending targets and the launch of new frameworks to embed sustainability, Kenya’s banks are increasingly positioning themselves at the heart of the green economy transformation.
