Absa Bank Kenya has advanced more than KES204 billion in sustainable finance between 2022 and 2025, reinforcing its commitment to mobilising capital towards initiatives that drive financial inclusion, enterprise growth, social development and environmental sustainability.

In the year under review, the bank disbursed KES55.3 billion in sustainable finance, up from KES47 billion in 2024. This included KES 48.8 billion in financial inclusion financing that supported SMEs, women-led businesses, young entrepreneurs and underserved communities, alongside KES6.5 billion in climate finance directed towards renewable energy, green buildings, energy efficiency and climate-smart agriculture.

The Absa Bank Kenya PLC 2025 Sustainability and Climate Report shows that the Bank's eligible sustainable finance allocation reached 30% of its gross loan disbursements, significantly exceeding its year-on-year target of 10% by 2025.

Speaking at the unveiling event at the Strathmore University, Yusuf Omari, the Absa Bank Kenya Interim Managing Director and Chief Executive Officer, noted that report reflects the Bank's commitment to creating shared value for customers, communities and the broader economy.

"Our 2025 Sustainability and Climate Report highlights what we have achieved under our 2021–2025 sustainability strategy, which was anchored on 13 commitments aimed at delivering meaningful economic, social and environmental impact. 

"From supporting businesses to grow and enabling access to affordable housing, to financing climate-smart agriculture, renewable energy and broader financial inclusion, we have intentionally deployed capital where it can make the greatest difference. We remain committed to partnering with our customers and stakeholders to build a more inclusive, resilient and sustainable future for Kenya."

Beyond financing the transition to a greener economy, Absa strengthened its own environmental stewardship in 2025. The Bank planted 283,969 trees, nearly four times the 72,000 trees grown in 2024, bringing the cumulative total to more than 1.5 million trees. 

In addition, Absa achieved a 96.4% waste recycling rate and reduced its operational energy footprint by 41%, underscoring its progress towards its net-zero ambitions.

The report also highlights the Bank's continued investment in social impact initiatives focused on youth employability, entrepreneurship and community development. During the year, nearly 38,000 young people were equipped with employability and entrepreneurial skills through the ReadytoWork programme, bringing the total number of beneficiaries to over 300,000 to date.  

During the year, Absa Kenya Foundation expanded its impact across its strategic pillars of Education and Skills Development, Entrepreneurship, and Natural Resource Management, impacting more than 50,000 individuals.

Gracing the event, Dr Festus Ng'eno, Principal Secretary, State Department for Environment and Climate Change, commended Absa Bank Kenya for demonstrating leadership in sustainability and advancing private-sector climate action.

"Climate change is already affecting livelihoods, infrastructure, ecosystems and economic productivity. The cost of inaction continues to rise, making climate investment not only an environmental necessity but also a sound economic decision. I encourage financial institutions, investors and development partners to continue expanding support for climate solutions, green enterprises and sustainable infrastructure,” he said.

During the year, Absa further strengthened its climate governance and risk management capabilities by embedding climate considerations deeply into business strategy, lending decisions and enterprise risk management processes.

These efforts position the Bank to better support customers as they navigate an operating environment shaped by climate change, rapid technological advancement and evolving stakeholder expectations.

The report also marks a significant milestone in the Bank's sustainability journey through enhanced disclosures aligned with the International Sustainability Standards Board (ISSB) framework. This includes IFRS S1 and IFRS S2, reinforcing Absa's commitment to transparency and accountability in managing sustainability and climate-related risks.

Looking ahead

Having delivered significant progress under its 2021–2025 Sustainability Strategy, Absa Bank Kenya announced the launch of a new Sustainability Strategy anchored on four measurable, pillars designed to accelerate growth, improve efficiency, and enhance customer experience.

The first pillar focuses on accelerating growth in sustainable finance, with a target of ensuring that at least 30% of gross loan disbursements support financial inclusion, green finance, and nature-based finance initiatives. The second pillar is centered on achieving net-zero emissions by 2050 through a comprehensive decarbonisation agenda. 

The third pillar seeks to strengthen sustainability risk management and governance, while the fourth aims to embed sustainability into the Bank’s culture and enhance client experience.

"As Kenya accelerates its transition towards a greener and more inclusive economy, Absa will continue partnering with government, businesses, development partners and communities to finance solutions that create lasting value and contribute meaningfully to the country's long-term development priorities," Mr. Omari said.