KCB Group has intensified its sustainability agenda with a significant rise in green and socially responsible financing, screening loans worth KShs. 578.3 billion for environmental and social risks in 2024.
The move reinforces the lender’s leadership in green finance and its commitment to Kenya’s transition toward a low-carbon and inclusive economy.
According to the newly released 2024 KCB Group Sustainability Report, the bank disbursed KShs. 53.2 billion in green loans during the year, expanding its green portfolio to 21.3 per cent, up from 15 per cent in 2023.
The financing supported renewable energy, e-mobility, blue economy initiatives, and climate change adaptation projects. Nearly half of these green loans, valued at KShs. 24.1 billion were verified using the Climate Assessment for Financial Institutions (CAFI) tool, enhancing transparency and accountability in sustainability reporting.
Since 2020, KCB Group has assessed more than KShs. 2.5 trillion in loans under its Environmental and Social Due Diligence (ESDD) process. The bank also allocated 7.5 per cent of its supplier contracts, worth KShs. 913 million, to businesses owned by special interest groups, reaffirming its commitment to inclusion and economic empowerment.
KCB Group CEO Paul Russo emphasized the need for a balance between profit and purpose.
“We must align our efforts with partners to drive economic development for the greater good. The conversation today must focus on safeguarding the planet and people even as we pursue profits,” he 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,” he added.
In 2024, KCB Bank Kenya secured a KShs. 69 million Project Preparatory Facility from the Green Climate Fund, part of its broader KShs. 15.5 billion plan to finance sustainable initiatives impacting more than 100,000 micro, small, and medium enterprises (MSMEs).
The bank also reported a 4 per cent reduction in resource consumption and offset 1.3 metric tonnes of carbon equivalent through the planting of over 1.38 million trees.
Speaking during the report launch, Dr. Eng. Festus Ng’eno, Principal Secretary in the State Department for Environment and Climate Change, lauded KCB for channeling finance toward green transformation, noting that the lender has supported projects worth over KShs. 160 billion to date.
“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. I am glad to see KCB Group continues to support green financing and has so far supported KShs. 160 billion worth of green projects.”
For the second consecutive year, KCB’s sustainability report underwent independent assurance by Deloitte, the only such verified report in Kenya’s financial sector. The report was prepared in reference to IFRS S1 and S2 standards, signaling KCB’s early adoption ahead of the 2027 global deadline.
“We need more and more businesses to adopt integrated thinking, where economic growth goes hand in hand with environmental integrity and social inclusion. When institutions publicly share their progress, their gaps, and their commitments, they raise the bar for the entire sector. This is the culture we want to nurture across all financial institutions in Kenya where transparency drives trust. said Raimond Molenje, Chief Executive Officer, Kenya Bankers Association.
Additionally, KCB continues to measure financed emissions in key sectors such as motor vehicles, commercial real estate, and business loans, with ongoing site visits to promote emission reduction strategies among clients.
Through its 2Jiajiri programme, the KCB Foundation disbursed KShs. 2.58 billion in loans to 4,000 youth-owned MSMEs, 38 per cent of which were led by women, further driving inclusive growth and entrepreneurship.