NAIROBI, Kenya – Kenyan banks have surpassed their annual Micro, Small and Medium Enterprises (MSME) lending target, disbursing Sh153 billion against a pledge of Sh150 billion, according to the Kenya Bankers Association (KBA).
KBA Chief Executive Raimond Molenje said the sector is now shifting focus towards nature-related financing, following the release of a new study mapping out Sh19.4 trillion worth of green investment opportunities across Kenya’s economy over the next decade.
“We promised to support MSMEs with Sh150 billion annually and I am happy to report we have already surpassed that to issue Sh153 billion. Going forward, we aim to integrate nature finance to sustain this growth while aligning with global biodiversity recovery targets,” Molenje said during the launch of the Nature Positive Financing Assessment Report in Nairobi.
The report, conducted by Rebel in partnership with KBA, WWF-Kenya, and GIZ, highlights opportunities in manufacturing, agriculture, water resource management, and environmental services.
It identifies innovative financing tools such as green bonds, blended finance, and risk-sharing guarantees as critical for unlocking large-scale investments.
Kenya’s nature-based sectors, including agriculture, forestry, fisheries, and tourism, contribute nearly 42 percent of GDP, according to WWF-Kenya CEO Mohamed Awer.
He noted that channeling finance into these areas could help bridge the biodiversity funding gap while driving inclusive economic growth.
The report outlines short- and long-term capital requirements across key industries. Agriculture, for example, requires about USD 500 million (Sh65 billion) within six months, rising to USD 2 billion over the next two years.
Manufacturing could attract up to USD 30 billion in the long term, while wildlife conservation requires USD 50 million immediately and USD 1 billion in the long term.
To accelerate the adoption of sustainable finance, KBA also launched the Centre for Sustainable Finance and Enterprise Development (CSFED). The facility will help banks design interventions that support enterprise growth while greening the financial system.
German development agency GIZ, which co-funded the report, said the findings are intended to guide financial institutions in scaling nature-based revenue models such as agroforestry, ecotourism, and carbon markets.
