Absa Bank Kenya is accelerating its shift from sustainability compliance to a core business strategy, backed by measurable targets and sector-specific investments.
Its 2024 Sustainability and Climate Report reveals that the lender disbursed Sh47 billion in sustainable finance in 2024, combining inclusive finance and green/climate finance. Of this, Sh4 billion went directly to climate-related projects.
Green Portfolio Targets
Absa has committed to green 10% of its loan book by 2025 and 30% by 2035. The lender’s management says that it is already close to achieving the first target.
Priority sectors include:
- •Renewable Energy – clean power generation financing.
- •Energy Efficiency – funding projects to cut energy use.
- •Climate-Smart Agriculture – Sh0.1 billion disbursed in 2024.
- •Green Buildings – Sh1.3 billion disbursed, including the Upcyc Home Loan for green-certified features such as solar power, efficient appliances, and water/waste systems.
A notable deal was a USD 650,000 green loan to Modular Real Estate EPZ Ltd, funding Kenya’s first green-certified repurposed warehouse made from end-of-life shipping containers.
Inclusive Finance and Measured Impact
Absa’s inclusive finance disbursements in 2024 included:
- •Sh25.1 billion via Timiza digital loans.
- •Sh9.6 billion to MSMEs.
- •Sh1.4 billion to low-income households.
- •Sh1.1 billion to women-led businesses.
- •Sh5.8 billion to youth (18–35).
The ReadytoWork programme has trained 263,410 youth to date, with a target of 1 million by 2030. The Women in Business programme supported 26,281 women in 2024.
According to the UNCTAD model, Absa’s direct GDP contribution is 3%.
Climate Risk Management
Absa has embedded climate risk into its lending framework using geo-referencing tools to assess asset vulnerability. The Environmental and Social Management System (ESMS) automates screening, ranking, and monitoring of transactions against E&S criteria, supported by the ESRA tool for portfolio-level and deal-specific risk reviews.
Net-Zero Path
The bank targets operational net-zero by 2040 and financed emissions net-zero by 2050.
Operational progress:
- •Three branches run on 90%+ solar energy.
- •94% of waste recycled, avoiding 6,906 kgCO2e.
- •Scope 2 emissions cut 38% from the 2019 baseline.
- •Energy use reduced from 6.5GW (2019) to 4.06GW (2024).
Financed emissions:
- •Pilot with six corporate clients to track facility-level carbon data.
Nature-Based Solutions and Carbon Credits
By end-2024, Absa aims to have grown 1.5 million trees (72,000 planted in 2024), with a target of 10 million by 2032 to support carbon credit generation.
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