Kenya Development Corporation (KDC) is presenting itself as an important player in Kenya’s transition towards a greener economy, with new products and a sustainability plan aimed at supporting green financing and investment.
The corporation has highlighted ideas such as green innovation, sustainable financing, a low-carbon economy and environmental protection as part of its new direction.
According to Nyakundi Report, the launch of these initiatives also raises questions about how KDC has managed public resources in the past.
Before the corporation takes on a bigger role in financing green projects, there are concerns about its management of assets, lending activities and the recovery of money from borrowers.
One of the issues that requires attention is the management of investment property owned by the corporation.
The Auditor General’s report for the financial year ended June 30, 2023, raised concerns over apartments that had remained unsold several years after their completion.
The audit found that 11 of the 28 apartments at Zamia Heights and 24 of the 36 units at Oceania Apartments were still unsold.
The combined value of the unsold units was about KSh490.5 million.
The situation meant that a significant amount of public money remained tied up in properties that were not generating the expected returns. KDC was also continuing to pay service charges for the unsold units.
The Auditor General raised the possibility that the slow uptake could affect the value of the properties.
The issue is important because KDC is a public institution whose resources are expected to support economic development.
When hundreds of millions of shillings remain tied up in unsold properties, questions naturally arise about planning, investment decisions and how quickly the corporation responds when an investment does not perform as expected.
The corporation also faces questions around its lending activities. KDC provides financing to businesses, with borrowers often offering property or other assets as security.
When loans are not repaid, the corporation can begin recovery proceedings, including seeking to sell secured assets.
Some of these disputes have ended up in court. In February 2025, a food processing company faced the possible loss of a prime property over a loan of about KSh276 million.
In another case, the High Court gave a borrower additional time to settle arrears before KDC could proceed with the sale of a secured property.
These cases do not automatically prove that KDC acted improperly. Loan recovery is part of the work of any lending institution.
However, they demonstrate the serious consequences that follow when financing arrangements fail. Businesses can lose important assets, employees can be affected and investments can be put at risk.
This is why the performance of a development finance institution should not be measured only by the amount of money it lends. Its wider responsibility is to support businesses that can grow, create employment, strengthen industries and contribute to the economy.
KDC’s new focus on green financing therefore comes with an important responsibility. The corporation must show that lessons have been learned from previous investments and lending decisions before it commits more public resources to new programmes.
The development of KDC’s green financing strategy has received support from the National Treasury and the World Bank.
The strategy involves establishing governance structures for green finance, developing financing tools such as green bonds and creating systems to track climate-related performance.
Those plans could help Kenya attract investment into clean energy, sustainable manufacturing and other environmentally friendly projects. But the success of such programmes will depend heavily on transparency and oversight.
Kenyans need to know how green financing will be monitored once money is released. If a company receives hundreds of millions of shillings under a green financing programme, there should be clear systems to establish whether the money was used for the approved purpose and whether the promised environmental results were achieved.
There should also be clear information about who approves the financing, who monitors the projects and what happens when a recipient fails to meet the agreed conditions.
KDC’s leadership, headed by Director General Norah Buyaki Ratemo, has an opportunity to address these concerns by making accountability a central part of the new programme.
Clear reporting on beneficiaries, amounts disbursed, repayment performance and environmental outcomes would help the public understand whether the initiative is delivering value.
Green financing is important for Kenya’s future, but its success cannot depend on public relations alone.
The country needs investment in clean energy, sustainable industries and projects that can create jobs and strengthen communities.
At the same time, public institutions handling such investments must be open about both their successes and failures.
The concerns surrounding KDC’s previous investments should therefore not simply be dismissed as old issues.
They provide an opportunity to examine how public money has been managed and what changes are necessary before new funds are committed.
When the publicity surrounding a new programme fades, the real test will be the results. Kenyans will want to know how much money was disbursed, who received it, what projects were financed, what was achieved and whether the funds were properly accounted for.
KDC can build confidence in its green financing programme by providing those answers from the beginning.
Public money requires public accountability, whether it is being used for traditional development projects or investments described as green.
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