Nairobi, Friday 4^th April 2025 – The United Nations Development Programme (UNDP) Kenya and CPF Group have signed a landmark cooperation agreement to drive sustainable development through green  innovative financing solutions. This strategic partnership aims to mobilize sustainable finance, enhance social protection, and strengthen digital transformation to advance Kenya’s economic and environmental goals.

Over the years, Kenya’s retirement benefit sector has experienced relative growth, with the pension industry now managing assets worth over KES 2 trillion. As the country faces an urgent need to scale up green investments, pension funds present a unique opportunity to drive sustainable finance. With this substantial asset base, these funds have the potential to accelerate investments in climate resilience, clean energy, and sustainable infrastructure.

The agreement, signed in Nairobi, outlines a framework for joint efforts in stakeholder engagement, policy advocacy, capacity building, and mobilization of sustainable finance. UNDP Kenya and CPF Group will work together to integrate Environmental, Social, and Governance (ESG) principles into pension fund investments, ensuring long-term financial security while advancing Kenya’s Vision 2030 and the Sustainable Development Goals (SDGs).

Speaking at the signing ceremony, Madelena Monoja, the UNDP Kenya Resident Representative a.i, underscored the importance of unlocking green finance to drive Kenya’s sustainable development. “By working with CPF Group, we aim to harness the power of sustainable finance to accelerate climate action and economic resilience. Pension funds are a crucial driver of long-term investments, and through this partnership, we will ensure they contribute meaningfully to Kenya’s green and inclusive growth.”

CPF Group Managing Director/CEO Dr. Hosea Kili MBS emphasized the role of pension funds in advancing sustainable investments. “This partnership with UNDP will help us champion financial security while promoting green and sustainable investment vehicles. By leveraging pension assets, we can create innovative financial products that support climate resilience and economic prosperity for all Kenyans.”

The partnership will focus on mobilizing sustainable finance for climate-smart projects, clean energy, and infrastructure. It will also drive policy advocacy by engaging regulators and financial institutions to integrate ESG principles into pension investments. Capacity building will be key, with training for fund managers and trustees to enhance sustainable investment strategies. Additionally, the collaboration will foster financial innovation, developing green bonds and sustainability-linked funds to attract investors while leveraging technology to boost financial inclusion.

This collaboration aligns with UNDP’s mission to foster multi-sectoral partnerships that drive innovation and sustainable finance. By combining UNDP’s global expertise in climate finance and policy with CPF’s leadership in pension and financial solutions, the partnership will create a scalable model for sustainable economic transformation in Kenya.

*****Ends*****