Last year, KCB Bank Kenya secured a KSh 69 million Project Preparatory Facility from the Green Climate Fund, a critical step in its broader pursuit of KSh 15.5 billion in funding to advance its sustainability agenda and positively impact over 100,000 micro, small, and medium enterprises (MSMEs)
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By The Weekly Vision Business Desk
KCB Group assessed loans worth KSh 578.3 billion for environmental and social risks last year, reinforcing the Bank’s growing role in green financing. This brings the cumulative loans assessed since 2020 to KSh 2.5 trillion under the Group’s Environmental and Social Due Diligence (ESDD) process.
The lender disbursed KSh 53.2 billion in green loans, expanding its green portfolio to 21.32 per cent, up from 15 per cent in 2023. The funding supported environmentally sustainable products promoting energy transition, including initiatives in the blue economy, e-mobility, and climate change adaptation. Of the total, nearly half , KSh 24.1 billion, has been verified using the Climate Assessment for Financial Institutions (CAFI) reporting tool, strengthening transparency and credibility.
At the same time, the Group allocated 7.5 per cent of its supplier contracts, valued at KSh 913 million, to businesses owned by special interest groups.
The details are contained in the 2024 KCB Group Sustainability Report, launched on Tuesday, which highlights the Bank’s progress in climate action, financial inclusion, and community development , all in line with its ambition to create long-term value for stakeholders while supporting Kenya’s transition to a green and inclusive economy.
KCB Group CEO Paul Russo said, “We have committed to further aligning our interests with partner institutions to bolster economic development for the greater good of all. The conversation today must be aligned to how we safeguard the Planet and People, even as we pursue Profits.”
He added, “The private sector has the opportunity, the manpower, and the assets to enable our communities to thrive. While we are committed to making a positive impact, we have learned that sustainable practices must also be economically viable in the long run.”
Last year, KCB Bank Kenya secured a KSh 69 million Project Preparatory Facility from the Green Climate Fund, a critical step in its broader pursuit of KSh 15.5 billion in funding to advance its sustainability agenda and positively impact over 100,000 micro, small, and medium enterprises (MSMEs).
KCB Group is actively reducing its carbon footprint and improving operational efficiency, achieving a 4 per cent reduction in overall resource consumption. Through targeted conservation measures, the Group has offset the equivalent of 1.3 metric tonnes of carbon, driven largely by the planting and nurturing of 1,386,203 trees.
Environment and Climate Change Principal Secretary Dr Festus Ng’eno commended the financial sector’s evolving role, saying: “For decades, the financial sector has been hailed as an enabler of human progress. In today’s context, it has become much more than capital flow; it is a lifeline for sustainable livelihoods. When thoughtfully directed, finance can help farmers adopt climate-smart agriculture, empower small and medium enterprises to scale, enable women and youth to unlock their entrepreneurial potential, and catalyse innovation in renewable energy and green infrastructure. I am glad to see KCB Group continues to support green financing and has so far funded KSh 160 billion worth of green projects.”
For the second consecutive year, the KCB Sustainability Report underwent limited assurance by independent auditor Deloitte, the only such report by a Kenyan financial institution. It was also prepared in reference to the IFRS S1 and S2 Standards, demonstrating the Group’s voluntary early adoption ahead of the 2027 mandatory deadline set by the International Sustainability Standards Board (ISSB).
Beyond its operations, KCB Group is addressing its indirect environmental impact by calculating financed emissions across three key sectors: motor vehicles, commercial real estate, and business loans. Based on these findings, the Group now conducts regular site visits to clients in carbon-intensive industries to identify and support emission reduction strategies.
Kenya Bankers Association CEO Raimond Molenje praised KCB’s transparency, noting: “We need more and more businesses to adopt integrated thinking, where economic growth goes hand in hand with environmental integrity and social inclusion. When institutions publicly share their progress, their gaps, and their commitments, they raise the bar for the entire sector. This is the culture we want to nurture across all financial institutions in Kenya, where transparency drives trust, and trust drives transformation.”
KCB Group’s inclusive transformation agenda is rooted in shared value, tackling key social challenges such as youth unemployment, inequality, and limited access to quality education. Through the KCB Foundation’s enterprise development programme 2Jiajiri, a total of KSh 2.58 billion was disbursed as loans to 4,000 youth-owned MSMEs, 38 per cent of which were women-led.
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