26 banks have been recognized for their excellence in adopting sustainable finance practices with Cooperative, KCB and ABSA bank emerging as the overall winners in number 1,2 and 3 respectively.
- •In 2024, a total of forty-nine entries were submitted by banks, an increase from forty-three in the year 2023.
- •KCB emerged best bank in sustainable finance followed by Absa, and NCBA in position two and three respectively.
- •Diamond Trust Bank emerged winner in the category of best bank case study (operations) followed by Cooperative Bank (2nd), I&M Bank (3rd). Under the best-case study in retail MSME category, Cooperative bank, National Bank and Sidian Bank were ranked position 1,2 and 3 respectively.
During the award ceremony, the Kenya Bankers Association (KBA), in collaboration with IFC and WWF Kenya 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.
According to the Kenya Bankers Association acting Chief Executive Officer Raimond Molenje, the Sustainable Finance Initiative has enabled over 50,000 bank employees to make lending decisions that benefit the environment, society, and economy. 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
Sophia Baumert, Project Manager, Sustainable Agricultural Systems and Policies (AgSys) said her organisation has initiated a partnership with Kenya Bankers Association (KBA) to support financial institutions in exploring sustainable financing opportunities for the agricultural sector.
“We believe that how we finance our agri-food systems – from both public and private sources of capital – may be the ultimate game changer since financing is both a driver of food system inefficiencies and an essential ingredient to their transformation. We recognize that climate change impacts how financial institutions perceive risks especially in the agricultural sector. Therefore, our partnership will enable financial institutions to implement sustainable financing options such as blended finance for investments into nature-based solutions that benefit the planet, beneficiaries, and the financial institutions.’’
“Sustainable business models and green financing are not mere trends—they are essential pathways for ensuring long-term economic stability and environmental stewardship. 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.” – Betty Korir, Kenya Bankers Association Vice Chairperson
‘’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. WWF-Kenya will continue to collaborate with the Kenya Bankers Association because we believe in a future of financial prosperity grounded in sustainability – a safe legacy that connects people, nature, and the economy.’’— Mohamed Awer, WWF-Kenya Chief Executive Officer.’’
