Kenya closed its first ever green bond on Thursday morning, raising Ksh 4.3 million to provide 5,000 university students with environmentally-friendly, affordable housing in Nairobi, in collaboration with the UK Department for International Development (DFID).
The bond, a first for East Africa, is a milestone in Kenya’s transition to a low-carbon economy and national vision of being a centre of financial excellence in the region.
Speaking at an event celebrating the bond closing, British High Commissioner to Kenya Jane Marriott said that she was delighted to help mark the arrival of East Africa’s first ever green bond in Kenya.
“This brings together two of the UK and Kenya’s partnership priorities, strengthening our
economic partnership and working together to respond to climate change,” she said.
Marriott said that the bond will go a long way in supporting the Big 4 Agenda, investing in
affordable and environmentally friendly housing for students in Nairobi.
“This is great news for young Kenyans continuing their education, and good news for the planet we share,” she added.
Issued by Acorn Holdings, the bond has been certified as green by the UK Climate Bonds Initiative due to its expected contribution to reducing carbon emissions
“Acorn is truly grateful for the unprecedented support we have received from UK DFID supported entities – especially GuarantCo and FSD Africa without which it would not have been possible to bring this bond to Market,” CEO of Acorn Holdings Edward M. Kirathe said.
The UK has been working with the Kenyan government to develop capital markets and attract the private finance needed to deliver on the Big 4 Agenda.
Since 2015, UK aid has funded FSD Africa’s work with the Capital Markets Authority and their green bond programme, which created the regulatory framework for green bonds in Kenya.