The banking industry has adopted the Sustainable Finance Initiative (SFI) Guiding Principles that will guide the balancing of business goals with the economic development priorities and socio-environmental concerns. Through the Kenya Bankers Association (KBA), banks adopted the principles during the second CEO Roundtable on Sustainable Finance held on March 31st 2015.
“Economic viability is vital, but time has come for the financial services sector in Kenya and the region to adopt and implement a more inclusive decision making model that also factors in variables such as environmental impact and social capital in the overall finance equation,” said KBA Chief Executive Officer, Mr Habil Olaka. “Kenya’s SFI process is unique in that it is the first ever market-led industrywide initiative of its kind in Africa.”
Mr Olaka said the principles are in line with international best practices, and form the industrywide minimum standard. The principles are also relevant to financial institutions in general and responsive to individual risk policies.
“In my view, the Sustainable Finance Initiative is one of the most noble but also necessary innovations we have undertaken as the banking industry because economic development, social wellbeing and environmental protection are matters that concern any global citizen, and every commercial entity,” said Mr Joshua Oigara, KBA Chairman and KCB Group CEO during the event at which the member banks formerly adopted the Principles.
Mr Oigara said the industry’s adoption of the Sustainable Finance Principles demonstrates that apart from deepening financial inclusion and contributing towards sustainable economic growth, the financial sector, and banks in particular are also concerned about the other challenges that Africa currently faces in the areas of climate change and environmental degradation, social exclusion and resource scarcity.
“By adopting the SFI Principles that align the industry, we usher in the next stage of the process, which is building the capacity of the KBA member banks to implement the standards within their banks and realise the vision of sustainable finance we have set for ourselves,” said Mr Oigara.
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