Absa Bank Kenya PLC’s 2024 Sustainability and Climate Report reveals a robust and intentional shift toward sustainable finance, positioning the bank as a key enabler of Kenya’s low-carbon and inclusive economic transition.
With the theme “Rooted in purpose, growing with impact,” the report underscores how sustainability is now embedded across Absa’s banking and finance operations.
Sustainable Finance Deployment
Absa disbursed a total of KES 47 billion in sustainable finance in 2024, targeting sectors and groups with high potential for inclusive growth and climate resilience. This includes:
- KES 25.1 billion through Timiza, its digital lending platform, which supports financial inclusion for underserved and unbanked populations.
- KES 9.6 billion to MSMEs, reinforcing the Bank’s commitment to entrepreneurship and job creation.
- KES 1.4 billion to low-income households.
- KES 1.1 billion to women-led enterprises.
- KES 5.8 billion to youth and startups.
This financing was directed toward sectors such as renewable energy, energy efficiency, climate-smart agriculture, and green buildings, areas aligned with Kenya’s Green Economy Strategy and the Paris Agreement.
“Sustainability is now a business imperative. Over the past three years, we have embedded it as a core lens through which we evaluate risk, opportunity, and long-term impact,” said CEO Abdi Mohamed. “The Eco-Home Loan is one example of how we are taking this forward.”
Eco-Home Loan: Financing Climate-Resilient Housing
A standout innovation is the launch of Kenya’s first Eco-Home Loan, offering up to 110% financing for homes with energy-efficient and climate-resilient features. This product enables customers to:
- Install solar panels and water-saving systems
- Use sustainable building materials
- Retrofit existing homes for energy efficiency
The loan reflects Absa’s strategic alignment with Kenya’s Green Finance Taxonomy and its commitment to a just transition.
Governance and Strategic Alignment
Absa’s sustainable finance strategy is backed by strong governance and regulatory alignment:
- Adoption of IFRS S1 and S2 standards from the International Sustainability Standards Board (ISSB)
- Integration of climate risk into Board-level oversight and risk frameworks
- Approval of key policies, including the Greenwashing Policy and Sustainability Risk Framework
“This year’s report reflects our continued evolution towards sustainability maturity and greater alignment with global standards,” said Chairman Charles Muchene. “We see this as a necessary shift to build investor confidence and comparability.”
Climate Metrics and Impact
Absa also reported measurable environmental outcomes:
- 38% reduction in Scope 2 emissions (electricity-related) compared to the 2019 baseline
- 2,745 kg of waste recycled, achieving a 94% recovery rate and avoiding nearly 7 tonnes of CO₂-equivalent emissions
- 1.5 million trees planted to date, supporting biodiversity and reforestation.
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