Absa Bank Kenya Advances KES 60 Billion in Sustainable Financing for 2023

By Bruno Aero

 Absa Bank Kenya PLC has demonstrated its unwavering commitment to sustainable development by advancing close to KES 60 billion in sustainable finance throughout 2023. This impressive figure underscores the Bank's dedication to integrating sustainability into its core operations and supporting the broader goals of economic and environmental stewardship.

 

 

Absa Bank Kenya Country Credit Director Christine Mwai-Marandu, Board Chairman Charles Muchene, State Department of Environment & Climate Change PS Dr. Eng. Festus Ngen'o, Absa Bank Kenya MD & CEO Abdi Mohamed, Safaricom CEO Peter Ndegwa and Chairperson of Global Compact Network Kenya Mr. Martin Ochien’g during the launch of the Bank's 2023 Sustainability Report.

 

The Bank’s latest Sustainability Report for the financial year ended December 31, 2023, reveals that this total comprises KES 22.3 billion in climate and sustainability-linked finance and KES 36.9 billion in inclusive finance. Themed ‘Banking on a Better, Sustainable Future,’ the report highlights Absa's significant strides in fostering environmental and social impact.

Climate Finance
Absa Bank Kenya allocated KES 14.1 billion towards renewable and clean energy projects, KES 2.9 billion for green building initiatives, and KES 2.2 billion for climate-smart agriculture and other sustainability-linked lending. These investments are part of the Bank's broader strategy to mitigate climate change and promote sustainable practices.

Inclusive Finance
The Bank has made considerable efforts to enhance financial inclusion. KES 21 billion was advanced to individuals and small businesses through Absa’s Timiza virtual banking platform. Additionally, KES 11 billion was provided to Micro Small and Medium Enterprises (MSMEs), with KES 4.9 billion specifically allocated to women entrepreneurs. This support aims to foster economic growth and empower underserved communities.

Abdi Mohamed, Managing Director & CEO of Absa Bank Kenya PLC, reaffirmed the Bank’s commitment to operating responsibly and ethically. “Our stakeholders expect us to demonstrate not only how we create value for our shareholders but also the broader impact we have on society and the environment,” he stated.

The report also showcases Absa’s progress in combating climate change. The Bank, in collaboration with various partners, has grown 728,095 trees, accelerating its goal of planting 10 million trees by 2032.

Dr. Eng. Festus Ng’eno, Principal Secretary of the State Department of Environment and Climate Change, commended Absa’s efforts: “Absa’s dedication to integrating sustainability into its core operations sets a precedent for other financial institutions and sectors. The financial sector is crucial in shaping our nation’s development trajectory.”

Mr. Mohamed emphasized the Bank’s commitment to sustainable financial solutions, stating, “Our sustainability journey reflects our brand purpose of empowering Africa’s tomorrow, together one story at a time. We are proud of our achievements but recognize there is still much work to be done.”

Key Highlights

Financial Inclusion

• Empowered 35,000 women entrepreneurs through the See Her Empowered (SHE) Star programme.
• Supported 14,000 entrepreneurs with business growth training and capacity building.
• Advanced KES 36.9 billion to MSMEs and women-led businesses.
• Provided KES 21 billion to start-ups and youth via Timiza.

Environmental Stewardship

• Invested KES 22.3 billion in climate finance, including renewable energy, green building, and agriculture.
• Grown 728,095 trees through partnerships.
• Reduced operational carbon emissions by 8%, advancing towards Net Zero status by 2050.
• Retrofitted 85 sites with energy-saving technology; 5 certified as green buildings.
• Partnered with SunKing to invest KES 2 billion in solar-powered projects for off-grid communities.
• Contributed to financing Safaricom’s KES 20 billion sustainability-linked loan.

Social Impact Initiatives

• Empowered 72,000 students in digital literacy through Computer for Schools.
• Impacted 20,274 youth through the Ready2Work initiative, reaching a total of 252,000 youth since launch.
• Dedicated 3,500 hours to community volunteer work.
• Achieved a 51:49 women-to-men gender split, with 40:60 in leadership roles.
• Recognized as a Top Employer for three consecutive years with 100% colleagues trained on future skills.

Sustainability in Sport

• Partnered with Athletics Kenya to plant over 2,500 trees at Kasarani Stadium during the Absa Kipkeino Classic Tour.
• Committed to planting 100 trees for every birdie scored at the Magical Kenya Open through the Birdies for Trees initiative.