Partners Unveil Sustainable Finance Guidelines and Report as Banks Shine in Sustainability
- Sustainable Finance Guiding Principles provide a robust framework for banks to integrate Environmental, Social, and Governance (ESG) considerations into their operations.
The Kenya Bankers Association (KBA), in collaboration with IFC and WWF Kenya have today launched the revamped Sustainable Finance Guiding Principles and the Landscape of Sustainable Finance in Kenya’s Banking Industry Report as part of ongoing efforts to deepen financial inclusion and sustainability within Kenya’s financial services sector.
Developed with IFC’s support, the revamped Sustainable Finance Guiding Principles provide a robust framework for banks to integrate Environmental, Social, and Governance (ESG) considerations into their operations. Alignment with global standards fosters responsible lending, sustainable investments, and innovative financial solutions that address Kenya’s socio-economic and environmental challenges.
The Landscape Report, supported by WWF-Kenya, highlights key achievements and challenges in sustainable finance. The report indicates that gross loans across 11 key sectors grew by 23 percent since 2020, reaching Sh3.6 trillion in 2022, with MSMEs receiving Sh783.3 billion. However, the report cites challenges such as high costs for sustainability-linked bonds, inconsistent sustainability reporting, and limited data standardization persist. The report identifies opportunities for further investment in green growth sectors, including agriculture, energy, water, manufacturing, and real estate.
Betty Korir, Kenya Bankers Association Vice Chairperson said, “Sustainable business models and green financing are not mere trends—they are essential pathways for ensuring long-term economic stability and environmental stewardship.
She added that by integrating sustainability into our lending and investment decisions, we can help mitigate climate risks, support green projects, and grow our economies while safeguarding the future of our planet.”
On his part, KBA Ag. CEO Raimond Molenje revealed that the Sustainable Finance Initiative has enabled over 50,000 bank employees to make lending decisions that benefit the environment, society, and economy. He pointed out that with the revamped guiding principles, the banking industry is better equipped to adopt best practices in governance and risk management, further driving innovation and financial inclusion.
‘’Kenya is endowed with rich natural resources, a dynamic entrepreneurial spirit, and a robust financial sector that provides a unique platform to champion sustainability. However, with these opportunities come significant responsibilities to adopt an integrated approach that aligns economic activities with the sustainable development agenda,” said Mohamed Awer, WWF-Kenya Chief Executive Officer.
He gave the assurance that WWF-Kenya will continue to collaborate with the Kenya Bankers Association in the effort to build a future of financial prosperity grounded in sustainability – a safe legacy that connects people, nature, and the economy.
Winners of Sustainable Finance Catalyst Awards 2024
During the summit, 26 banks were recognized for their excellence in adopting sustainable finance practices as follows:
Overall Winners
- 1st Place: Cooperative Bank
- 2nd Place: KCB Bank
- 3rd Place: ABSA Bank
Winners in Each Category
- Best in Sustainable Finance: KCB Bank (1st), ABSA Bank (2nd), NCBA Bank (3rd)
- Best Case Study – Retail MSME: Cooperative Bank (1st), National Bank of Kenya (2nd), Sidian Bank (3rd)
- Best Client Case Study – Commercial: Cooperative Bank (1st), KCB Bank (2nd), Stanbic Bank (3rd)
- Best Bank Case Study – Bank Operations: Diamond Trust Bank (1st), Cooperative Bank (2nd), I&M Bank (3rd)
- Best Client Case Study – Promoting Gender Inclusivity: KCB Bank (1st), KWFT Bank (2nd), Cooperative Bank (3rd)
- Best Bank Case Study – Promoting PWD Accessibility: KCB Bank (1st), ABSA Bank & CO-OP Bank (tie for 2nd), DIB Bank (3rd)
- Most Innovative Bank: ABSA Bank & CO-OP Bank (tie for 1st), Equity Bank (2nd), I&M Bank (3rd)
- Most Improved Bank: DIB Bank Kenya (1st ) DTB Bank( 2nd) Credit Bank (3rd)
In 2024, a total of forty-nine entries were submitted by banks, an increase from forty-three in the year 2023.
