Kenya is set to revolutionize the continent's financial landscape by issuing Africa's first Sustainability-Linked Bond, with the support of the World Bank. This groundbreaking $500 million bond, slated for release by November, signifies a significant departure in sustainable financing strategies. The bond, spearheaded by the World Bank, integrates financial goals with environmental and social responsibilities, reflecting Kenya's ambitious sustainability agenda. It incorporates predefined sustainability performance targets encompassing climate, social, health, and energy initiatives, highlighting Kenya's commitment to addressing pressing socio-economic challenges.
The bond proceeds will bolster general budget support, aligning with Kenya's strategy to diversify external funding sources and tackle critical issues head-on. The collaboration between Kenya and the World Bank aims to establish a robust sustainability-linked framework and key performance indicators, incentivizing proactive measures beyond traditional norms.