CBK issues Draft KGFT for Public Consultation

Issuance of Draft Kenya Green Finance Taxonomy (KGFT);

The Central Bank of Kenya (CBK) has released the draft Kenya Green Finance Taxonomy (KGFT) (available http://www.centralbank.go.ke for public consultation.

The KGFT is part of the outputs of the ongoing European Investment Bank (EIB) – Central Bank of Kenya (CBK) Greening Financial Systems Technical Assistance Programme that commenced in October 2023.

The proposed KGFT is intended to serve as a tool to classify whether particular economic activities are ‘green’ or environmentally sustainable.

It is also intended to serve as a guide for both banking sector participants and other market participants in making informed investment or financing decisions.

The draft KGFT largely drew from Kenya’s Nationally Determined Contributions (NDCs) under the United Nations Framework Convention for Climate Change (UNFCC) and other National Climate Policy Documents.

The KGFT, which will be a live document subject to periodic updates, initially focuses on climate change mitigation and adaptation as its objectives.

Other environmental objectives, such as biodiversity and related objectives, will be considered in future updates.

In this regard, CBK requests all interested stakeholders to share their comments on the document and provide further inputs to this consultation within 60 days from this communication.

We would appreciate receiving your comments or feedback on or before June 11, 2024.

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Key Rates;

Central Bank Rate 13.00% 03/04/2024

Inter-Bank Rate 13.19% 12/04/2024