Nairobi Securities Exchange Launches Green Bond Segment to Fund Climate Projects

The Nairobi Securities Exchange (NSE) has launched a dedicated Green Bond Segment to accelerate financing for renewable energy, afforestation, and climate-resilient infrastructure. Unveiled in April 2024 in partnership with the Capital Markets Authority and UNDP, the platform allows corporates and counties to issue certified green debt instruments. Kenya Power and the Nairobi City County are among the first issuers, seeking Ksh15 billion for solar mini-grids and electric bus fleets. The move aligns with Kenya’s commitment to cut emissions by 32% by 2030. Investors will benefit from tax incentives and ESG reporting standards. The NSE aims to mobilize Ksh200 billion in green investments by 2027. Experts hail the initiative as a game-changer for sustainable finance in East Africa, though liquidity and verification mechanisms remain key challenges.