This archive report was first published on 3 October 2019.
On October 3, 2019, Kenya took a significant step towards sustainable development with the launch of its first green bond. The bond, issued by Acorn Holdings, raised 4.3 billion shillings, surpassing its minimum target of 2 billion shillings.
The green bond is expected to provide 5,000 university students with environmentally-friendly, affordable housing in Nairobi. The funds raised will be used to construct cheap and eco-friendly university hostels with a combined capacity of 40,000 beds, with a room renting at an average of 6,800 shillings monthly.
Acorn Holdings Limited CEO Edward Kirathe attributed the success of the bond to commercial banks and pension funds schemes, which were among the highest subscribers. The bond issue achieved an 85 per cent subscription rate, just falling short of its target of 5 billion shillings.
The government has been urged to continue encouraging such green ventures, including removing tax on environmentally-friendly projects and offering tax exemptions to rope in more private equity in the sector.
The first phase of the eco-friendly affordable hostels is expected to accommodate 5,000 college students. This milestone marks a significant step towards Kenya's commitment to sustainable development and reducing its carbon footprint.
