NAIROBI, Oct. 3 (Xinhua) – A first corporate green bond was launched Thursday in Kenya to help tackle climate change.

Julius Muia, Principal Secretary of the National Treasury, told reporters in Nairobi that the first debt instrument in the East and Central Africa region was issued by Acorn Holdings and raised 4.26 billion shillings (approximately $ 41.3 million) from investors.

Kenya is prioritizing green finance in accordance with the requirements of the Paris Agreement in 2015, the United Nations Agenda 2030, the African Union’s Agenda 2063 as well as the Vision 2030 national development plan, Muia said.

Muia said Kenya’s economy, like many others around the world, is still heavily dependent on natural resources and remains deeply vulnerable to the effects of climate change.

“Traditional economic sectors such as agriculture, tourism, energy, health and infrastructure are threatened by climate change risks such as droughts, storm surges, floods and sea level rise. of the sea along our coastline, ”he added.

The Green Funding Instrument was made possible after the successful completion of the Green Bond Rules and Guidelines which were launched earlier this year by the Capital Markets Authority and the Nairobi Securities Exchange.

The Treasury official noted that the financial services sector has experienced unprecedented challenges, impacting not only the regulatory framework, but also the environmental and social aspects of long-term financial returns.

“These effects are already being felt across the country on an unprecedented scale, hence the need for a coherent green fiscal policy and legislative frameworks to accelerate the paradigm shift towards the green economy by attracting investment from the sector. private, ”Muia said.

He revealed that the government is committed to transforming Kenya into a newly industrialized middle income country, providing a high quality of life for all its citizens in a clean, safe and sustainable environment.

“In order to achieve this ideal, financing and corresponding green investments such as green bonds should form the basis of public and private financing mechanisms for the present and future development of our country,” said Muia.

Gerald Nyaoma, director of the banking supervision department of the Central Bank of Kenya (CBK), said the green bond issued by the Acorn Group, a property development and management company, will be used to finance the construction of respectful student housing of the environment.

According to Nyaoma, the green bond is aligned with the goal of the Kenya Green Bond Program, which anchors the private sector to promote sustainable development through climate-friendly investments in Kenya.

“Green bonds represent an important tool for Kenya to move towards a green economy, progress towards the sustainable development goals and realize the vision of being a financial hub for the region,” he added.

The CBK official said climate finance is important to tackle the perils of the rapidly warming planet as global emissions have increased.