(Xinhua) -- Kenya on Friday
kicked off a Green Bond Programme that aims to raise
funds to finance green economy projects.
Kenya central bank governor Patrick Njoroge told a
media briefing in Nairobi that the program will develop
a legal and policy framework that will enable Kenya to
issue green bonds.
"According to the program, the first green bond which
will be used to gauge the appetite of investors will be
floated by the end of the year," Njoroge said.
The program is a joint effort of the Kenya Bankers
Association (KBA), Nairobi Securities Exchange (NSE) as
well as the Financial Sector Deepening (FSD) Africa.
Njoroge said that Kenya is already a regional
financial hub and so it hopes to lead the region in the
adoption of green bonds.
During the launch, FSD Africa committed funding
amounting to 600,000 U.S. dollars over a period of three
years to fund the program with the objectives of aiding
KBA to be in a position to tap the growing investor
demand for green investments.
Njoroge added that the green bonds will help Kenya
mitigate and adapt to the effects of climate change.
He noted that Kenya is already feeling the impact of
the climate change that has caused the present drought
in the arid and semi-arid parts of the country.
KBA CEO Habil Olaka said that the global financial
community is already transiting towards green finance
because it promotes sustainable development.
"We will therefore develop and sustain the best green
bond practices that will inevitably strengthen financial
structures in the country," Olaka said.
NSE CEO Geoffrey Odundo said that the exchange is
committed to developing a vibrant green market for the
East African region.
"Through the NSE, issuers and investors will have a
platform where they can come together and fulfill their
green objectives," Odundo said.