When 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 on November 20, many thought it was a marketing gimmick.
But when 26 banks were recognized at the KBA sustainability summit for their excellence in adopting sustainable finance practices as part of ongoing efforts to deepen financial inclusion and sustainability within Kenya’s financial services sector, the question then became, why is sustainable finance so important?
ABSA Bank and CO-OP Bank were named the most innovative banks, with Equity Bank (2nd), I&M Bank (3rd). In the Best in Sustainable Finance category, KCB Bank became first, ABSA Bank (2nd), and NCBA Bank (3rd).
“What gives us pleasure is being among overall winner of banks that are promoting sustainable practices. At Absa, we say that banks and financial institutions can compete on many things but collaborations will also go a long way. Also, seeing colleagues in the industry taking away awards means that we are moving our economy just one step towards that place that we are a more sustainable. So, big thanks to the KBA team, and congratulations to the fellow banks that have bagged awards,” said head of sustainability and corporate affairs Charles Wokabi, explaining what the award means to the Bank.
In 2024, a total of forty-nine entries were submitted by banks, an increase from forty-three in the year 2023.
With the support of Sustainable Finance Guiding Principles that provide a framework for banks to integrate Environmental, Social, and Governance (ESG) considerations into their operations, great achievements have been made – Alignment with global standards fosters responsible lending, sustainable investments, and innovative financial solutions that address Kenya’s socio-economic and environmental challenges.
“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, said.
The Landscape Report, supported by WWF-Kenya, shows a spotlight on 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.
“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,” Raimond Molenje, KBA Ag. CEO, said.
Mohamed Awer, WWF-Kenya Chief Executive Officer on his part said that while Kenya is endowed with rich natural resources, a dynamic entrepreneurial spirit, and a robust financial sector that provides a unique platform to champion sustainability, opportunities come with significant responsibilities. He said, “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.”
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)
