The Agricultural Finance Corporation (AFC) has received global recognition for making climate resilience a core part of development finance.
The lender was awarded at the Global Sustainable Finance Conference (GSFC) 2026 in Karlsruhe, Germany.
The award recognised AFC’s efforts to integrate sustainability into its corporate strategy, governance and lending decisions.
This makes it the first Kenyan institution to attain certification under the globally recognised Sustainability Standards and Certification Initiative (SSCI).
The recognition comes at a time when climate risk is becoming an increasingly consideration for agricultural financing in Kenya.
Agriculture remains highly exposed to drought, floods and changing
rainfall patterns, yet the sector accounts for about one-fifth of Kenya’s
economic output.
The World Bank estimates that 98 per cent of Kenya’s
agriculture is rain-fed, leaving farmers particularly vulnerable to weather
shocks.
Against this backdrop, AFC says it has embedded climate-risk
considerations into its operations and financing decisions while serving
213,740 active borrowers through an agricultural financing portfolio of about
Sh13 billion.
One of its most visible interventions is the mandatory
Environmental and Social Management System (ESMS) screening of loan
applications.
The Corporation has also introduced a requirement for
borrowers to plant one tree for every Sh10,000 advanced.
The initiative has contributed to more than one million
trees being planted by AFC, its customers and communities across all 47
branches during the 2024/25 and 2025/26 financial years.
Beyond supporting Kenya’s tree-growing drive, the programme
links agricultural finance directly to land restoration and carbon reduction.
AFC has also directed financing towards areas where climate shocks pose the greatest threat to livelihoods.
Another notable intervention is climate-resilient irrigation financing at the Ahero Irrigation Scheme.
Working with the National Irrigation
Authority, AFC used a $77,370 (Sh10 million) credit guarantee to mobilise Sh161.8 million,
representing a leverage ratio of more than 16 times.
Such financing is increasingly important as Kenya seeks to
reduce agriculture’s exposure to climate volatility.
The World Bank warns that climate inaction could reduce Kenya’s real GDP by as much as 7.25 per cent by 2050 under some scenarios.
AFC managing director George Kubai said the recognition
reinforces the Corporation’s role in steering Kenyan agriculture towards
greater climate resilience and sustainability.
