Connect with us

Business News

Caring for environment attracts quick loans from KCB

Published

on

KCB Group screened Kshs268 billion in loans last year for social and environmental risks as part of its tougher stance in managing climate change and commitment to green finance.

KCB said it has now fully integrated its Environmental and Social Management System (ESMS) into the lending process — for facilities to corporate and small and medium-sized enterprises (SME) clients — further aligning key business operations with the KCB’s Sustainability Agenda.

A total of 42 social environmental assessments were undertaken on 100 million facilities worth Ksh268 billion in 2016. This constitutes at least 70 per cent of the bank’s loan book which stood at Ksh385.7 billion. In 2017, this process will also be implemented in micro-lending, as the bank seeks to further deepen its contribution towards reducing the impact of climate change.

Screening is done to avoid and manage loans with potential social and environmental risks by conducting social and environmental due diligence prior to loan disbursement. This means that eventually, businesses with effective strategies towards reducing environmental impact in their operations would be better positioned to get loans in the future, said KCB Group CEO and MD Joshua Oigara.

Joshua-Oigara-KCB-CEO Caring for environment attracts quick loans from KCB

Joshua Oigara, KCB CEO: We are committed to being a sustainability leader by contributing to the green economy which is new to the industry.

“We are committed to being a sustainability leader by contributing to the green economy which is new to the industry. We have made great strides in undertaking social and environmental assessments on our portfolios and seek to further enhance these procedures as we engage more with stakeholders across the region and globally” said Mr Oigara.SEE ALSO: Nakumatt gets reprieve from court as auctioneers come calling

The details are contained in KCB’s 2014-2016 Sustainability Report published this week which details what the bank is doing beyond the pursuit of profits to reduce the impact on the environment and the planet while uplifting communities, as part of its core business.

KCB plans to partner with other industry players to raise Green Bonds — loans issued to banks to fund projects that have positive environmental benefits especially in green investments such as renewable energy, water infrastructure and sustainable agriculture.

The bank is also looking at raising funds from the Global Climate Fund to support some of the green financing projects such as Mifugo in Mali, agribusiness and Inua Jamii.

“It is our belief that these efforts, combined with continuous improvement towards our goals, will raise our sustainability performance and help all of our stakeholders understand our intense desire for continued progress. We recognize the importance of our work for the future of our business and the communities we serve and we are ready to deliver on our promise to our stakeholders” he said.

In April, the Kenya Bankers Association (KBA) and the Nairobi Securities Exchange (NSE) launched the Kenya Green Bonds programme to fight climate change. KCB said it is keen on maintaining operational efficiencies on all aspects and all the way to the branch level in ensuring that it becomes a carbon neutral bank.

Among the raft of measures that the Bank has adopted and is pushing is introduction of video-conferencing and e-boards for board meetings, adoption of the KCB Green Agenda initiative across the Group; investing in low carbon emitting vehicles and leasing as opposed to buying and outsourcing transport and use of electronic document management system and adoption of paperless transactions (mobile and Internet banking).

“We believe that business is no longer just about making profits but about transforming the lives of communities in markets where we operate,” said Mr Oigara.  “We don’t operate in a vacuum but in an environment where we have to ensure that we are a good corporate citizen.”

 

Nokia 8 - Share Both sides of the story.

Business Today is the leading independent online business website in Kenya. Started in 2012 by a veteran business journalist, it has a huge following both in Kenya and abroad. It covers various business and related issues. Email editor at: [email protected]

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Health19 hours ago

Former TV presenter Louis Otieno goes deaf

The only way his hearing can be fixed is by having a procedure undertaken in India called Cochlear implant

Health19 hours ago

Five surprising causes of hearing loss

The number-one cause of deafness is probably quite an obvious one: age. Most people’s hearing begins to decline from 30...

NEWS3 days ago

Blind couple celebrates their love in style

As the world marked Valentine’s Day on Wednesday, visually challenged Joseph Mwaniki decided to surprise his blind wife of 27...

NEWS3 days ago

Aboud Rogo’s widow jailed for 10 years

Haniya Said was found guilty of conspiracy for supporting an attack in which three women fire-bombed the port city's main police...

Health3 days ago

Kenya says open to more insurance investors

Kenya has a population of 45 million people, according to Kenya National Bureau of Statistics and the government says it...

NEWS3 days ago

Quit if you can’t deliver, Uhuru tells new Cabinet

President said he expected his new Cabinet to help in the achievement of the Big Four Agenda that will transform...

NEWS3 days ago

Jubilee MP Alfred Keter arrested for Sh633m fraud

Recently, he was among the four Jubilee legislators kicked out of house committees for defying a State House order on...

NEWS3 days ago

I stopped Kalonzo from taking oath, churchman says

Arch Timothy Ndambuki says together with 19 clerics from the county they met Kalonzo prevailed upon him to keep off...

NEWS4 days ago

High Court revokes Miguna’s deportation

Justice Luka Kimaru directed the government to deposit Dr Miguna’s revoked passport at the court within seven days

Health4 days ago

Where patients give witchdoctors first priority

Professional diagnosis by doctors in hospitals is sought as a last resort after the traditional healers have failed

Advertisement



Trending