KCB Group assessed loans valued at Ksh 578.3 billion for environmental and social risks last year. This brings the cumulative total loans assessed since 2020 to over Ksh 2.5 trillion under the Group’s Environmental and Social Due Diligence (ESDD) process.
The lender disbursed Kshs 53.2 billion in green loans, growing its green portfolio to 21.32% from 15% in 2023. The support was extended to green products designed to foster energy transition, including initiatives in the blue economy, e-mobility, and climate change adaptation. Of the KShs. 53.2 billion, nearly half, KShs.24.1 billion has been verified using the Climate Assessment for Financial Institutions (CAFI) reporting tool, further enhancing transparency and credibility.
At the same time, KCB Group allocated 7.5% of its supplier contracts, totalling Ksh 913 million, to businesses owned by special interests’ groups. The details are contained in the 2024 KCB Group Sustainability Report launched on Tuesday, highlighting the bank’s significant strides in climate action, financial inclusion, and community development.
“The conversation today must be aligned to how we safeguard the Planet and People even as we pursue Profits,” KCB Group CEO, Paul Russo said. “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 should also be economically viable in the long run.”
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Last year, KCB Bank Kenya secured a Ksh. 69 million Project Preparatory Facility from the Green Climate Fund. This is a critical step in our broader pursuit of Ksh 15.5 billion in funding to advance our sustainability agenda and positively impacting the lives of over 100,000 micro, small and medium enterprises.
KCB Group is actively reducing its carbon footprint and improving operational efficiency, as evidenced by a 4% reduction in overall resource consumption. Through targeted conservation measures, the Group has offset a carbon equivalent of 1.3 metric tonnes of carbon equivalent. This success was largely driven by the planting and growing of 1,386,203 trees.
When thoughtfully directed, finance can help farmers adopt climate-smart agriculture.
Dr. Eng. Festus Ng’eno, Principal Secretary, State Department for Environment and Climate Change said: “For decades now, 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 catalyze innovation in renewable energy and green infrastructure..”
Beyond its own operations, the Group is addressing its indirect environmental impact by calculating its financed emissions for three key sectors: Motor Vehicle, Commercial Real Estate, and Business Loans. Based on these findings, the Group now conducts regular site visits to customers in carbon-intensive sectors to identify and support the implementation of emission reduction strategies.
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