Absa Bank Kenya PLC has reported advancing nearly KES 60 billion in sustainable finance throughout 2023, underscoring its steadfast commitment to promoting sustainable development. This significant figure, highlighted in the Bank’s Sustainability Report for the fiscal year ending December 31, 2023, reflects both climate and inclusive finance initiatives.
The report, titled “Banking on a Better, Sustainable Future,” details that KES 22.3 billion was allocated to climate and sustainability-linked finance, with KES 36.9 billion directed towards inclusive finance. Specifically, within the climate finance category, KES 14.1 billion was invested in renewable and clean energy projects, KES 2.9 billion in green building initiatives, and KES 2.2 billion in climate-smart agriculture and other sustainability-linked loans.
In the realm of inclusive finance, KES 21 billion was advanced to individuals and small businesses through Absa’s virtual banking platform, Timiza. Additionally, KES 11 billion was allocated to Micro, Small, and Medium Enterprises (MSMEs), and KES 4.9 billion was directed towards women entrepreneurs. These investments are categorized under inclusive finance, reflecting the bank’s broader financial inclusion strategy.
Absa Bank Kenya PLC’s Managing Director & CEO, Abdi Mohamed, reaffirmed the institution’s dedication to operating in a manner that is not only profitable but also responsible and aligned with societal needs. “In today’s world, our stakeholders—whether they are investors, regulators, or customers—expect more from us. They want to see the bigger picture, understanding not only how we create value for our shareholders but also the broader impact we have on society and the environment,” Mohamed stated.
Absa Bank Kenya CFO Yusuf Omari, Board Chairman Charles Muchene, State Department of Environment & Climate Change PS Dr. Eng. Festus Ngen’o, Absa Bank Kenya MD & CEO Abdi Mohamed, and Country Credit Director Christine Mwai-Marandu during the launch of the Bank’s 2023 Sustainability Report.
The report also highlights the bank’s significant efforts in combating climate change. During the review period, Absa, in collaboration with various organizations, grew 728,095 trees, advancing its goal of planting 10 million trees by 2032.
Dr. Eng. Festus Ng’eno, the Principal Secretary of the State Department of Environment and Climate Change, commended Absa Bank’s approach. “The financial sector plays a pivotal role in shaping the trajectory of our nation’s development. Banks are not merely financial intermediaries; they are the lifeblood of our economy. Absa’s dedication to integrating sustainability into its core operations sets a precedent for other financial institutions and indeed, for all sectors of the economy,” Ng’eno said.
Mr. Mohamed emphasized Absa’s overarching commitment to sustainability. “At Absa Bank, our commitment to creating a sustainable future for all is anchored in our brand purpose of empowering Africa’s tomorrow, together one story at a time. We remain dedicated to providing sustainable financial solutions that support businesses and facilitate economic growth. Our sustainability journey is a testament to our commitment to making a positive impact on society and the environment. While we are proud of our accomplishments, we recognize there is still much work ahead,” he added.