KCB reports KShs.53.2bn in green loans, boosts climate impact

KCB Group has made significant strides in green financing and social impact, disbursing KShs. 53.2 billion in green loans in 2024, according to its newly released Sustainability Report.

The loans, which grew the bank’s green portfolio to 21.32% from 15% in 2023, supported initiatives in energy transition, e-mobility, blue economy, and climate change adaptation. Nearly half of this amount, KShs. 24.1 billion was verified using the Climate Assessment for Financial Institutions (CAFI) tool, ensuring transparency.

The report, launched on Tuesday, details KCB’s assessment of KShs. 578.3 billion in loans for environmental and social risks last year, contributing to a cumulative KShs. 2.5 trillion since 2020 under its Environmental and Social Due Diligence (ESDD) process. KCB Group CEO Paul Russo emphasized the bank’s commitment to balancing profit with planetary and social good. “The private sector has the power to enable thriving communities,” Russo said. “Sustainable practices must be economically viable to create lasting impact.”

KCB’s efforts extend beyond financing. The group reduced its carbon footprint by 4% through conservation measures, offsetting 1.3 metric tonnes of carbon equivalent by planting 1.38 million trees. Additionally, KCB Bank Kenya secured a KShs. 69 million Project Preparatory Facility from the Green Climate Fund, paving the way for KShs. 15.5 billion to support over 100,000 micro, small, and medium enterprises (MSMEs).

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The report, independently audited by Deloitte for the second consecutive year, aligns with IFRS S1 and S2 Standards, a voluntary early adoption ahead of the 2027 ISSB deadline. KCB also allocated KShs. 913 million, or 7.5% of supplier contracts, to businesses owned by special interest groups

Dr. Eng. Festus Ng’eno, Principal Secretary for Environment and Climate Change, praised KCB’s role in green financing, noting its support for KShs. 160 billion in green projects. “Finance is a lifeline for sustainable livelihoods, empowering farmers, entrepreneurs, and renewable energy innovation,” he said.

Through its KCB Foundation’s 2Jiajiri program, KCB disbursed KShs. 2.58 billion in loans to 4,000 youth-owned MSMEs, 38% women-led, creating over 60,686 jobs. The Mifugo ni Mali program supported 1,119 poultry farmers and 913 blue economy entrepreneurs, enhancing livestock productivity in Kenya’s arid regions.

Raimond Molenje, CEO of the Kenya Bankers Association, lauded KCB’s transparency. “When institutions share their progress and commitments, they raise the bar for the sector,” he said. KCB’s focus on integrated thinking continues to drive economic growth alongside environmental and social progress.