Driving Sustainable Finance: Absa Bank Kenya’s Bold Commitment to KES 120 Billion
Absa Bank Kenya has allocated more than KSh120 billion to support sustainable projects in the Kenyan economy over the upcoming three years.
In its recently published Sustainability Report, absa bank outlines its strategic actions related to 13 commitments established during the launch of its Sustainability Commitments in November 2020.
These commitments encompass a range of themes, including Net Zero Commitments, Social and Environmental Impact, Empowerment of Women and Youth, as well as Value Creation for Businesses and Partners.
During the event, Charles Muchene, the Chairman of the Board at Absa Bank Kenya PLC, expressed that “In the last three years, we have been implementing our sustainability strategy, which has 13 commitments as the core drivers of our shared value strategy. In acknowledgment of the importance of climate change and the urgent need for global action to avert a climate disaster, we have accelerated our efforts towards improving our green credentials and climate approach, including reducing our carbon footprint and pursuing green funding opportunities.”
Up to this point, the top-tier bank has disclosed a green lending portfolio amounting to Sh60 billion, comprising Sh1.5 billion ($10 million) directed towards climate-smart agriculture, Sh25 billion for climate finance, and Sh15.2 billion channeled through Timiza to aid financially marginalized segments of society.
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Absa is actively broadening its investment scope and elevating financial and capital support for endeavors that bolster renewable and eco-friendly energy, various industries, innovation, infrastructure, underserved communities, sustainable urban development, conscientious consumption and production, as well as value chains.
“The subject of sustainable finance is one that has been growing and developing around the world and in Kenya, and as Absa, we have been taking the lead in it,” noted Absa Bank Kenya managing director Abdi Mohamed.
Absa bank Kenya has announced its dedication to evaluating climate risks and exposure, collaborating with the International Finance Corporation (IFC) for portfolio reviews. These reviews will shape their climate finance strategy and establish benchmarks. By December 2023, the bank aims to align its portfolio according to sector preferences.
Absa is also working towards mobilizing at least Sh25 billion in green and transition finance, involving both internal and external funding partnerships. They have partnered with Acorn Holdings Limited, committing Sh6.7 billion for green building projects, which will create 10 purpose-built student accommodation developments in Nairobi, certified under the IFC’s green building standard, EDGE.
Sustainability in banking is crucial to address environmental and social challenges. Banks play a pivotal role in financing and supporting sustainable practices, which is vital for mitigating climate change, reducing inequality, and fostering responsible consumption. Sustainable banking not only ensures a better future but also mitigates risks and attracts socially conscious investors.
Stay informed about absa bank kenya’s sustainability efforts, as they’re dedicated to positive change. Utilize the absa paybill number for effortless transactions and explore the convenience of absa internet banking for streamlined financial management.
For in-person banking, discover the ease of locating nearby absa bank branches or finding the absa bank near me to meet your needs.
Keeping up with Absa’s initiatives allows you to align your financial activities with a socially responsible and sustainable bank, making a positive impact while enjoying convenient and efficient banking services, both digitally through Absa online banking and in your local community. Join Absa in shaping a better future for Kenya.
