Kenya considers issuing green bond to finance energy development
The green bond will provide climate-sensitive financing to projects, including facilities for geothermal, solar, and wind power
According to Samuel Kimani, chairman of the Nairobi Securities Exchange (NSE), an appetite among foreign and local investors for low-risk and climate-sensitive debt instruments has prompted the Kenyan government to consider listing of a sovereign green bond.
Market experts are optimistic about the green bond, as Kenya’s first green corporate bond succeeded in raising 4.3 billion shillings (USD 41.5 million) earlier in the month. There are already a number of planned project which may qualify for funding by the green funds, including geothermal, solar, and wind power facilities.
With Kenya being particularly vulnerable to climate change, the provision of sustainable sources of financing is seen as a long-term strategy for economic security.