Lender KCB advanced a total of Kes21.4 billion in green loans last year targeting borrowers in various sectors in the region's emerging green economy. This financing accounted for 15.5 percent of the bank's total loan book.

In an update during the release of the bank's Environmental, Social & Governance (ESG) and Sustainability Report for 2023, Group CEO Paul Russo said the green loans were directed towards projects in e-mobility, climate change adaptation, and mitigation.

For instance, in July last year, KCB entered into a partnership with the United Nations Institute for Training and Research (UNITAR) in a deal targeting 100,000 riders to benefit from electric motorbikes in the next 6 years.

This KCB-UNITAR partnership is poised to create over 150,000 new green jobs in the boda-boda sector in the country.

Earlier in 2022, KCB partnered with electric bus manufacturer BasiGo Kenya to finance the acquisition of green PSV buses. This deal allows KCB customers in the PSV industry to access up to 90 percent funding with an extended repayment period of 36 months.

The partnership aims at supporting the PSV industry in reducing their greenhouse emissions while enhancing their ability to respond to climate change through adaptation and mitigation measures.

Also benefiting from KCB's green financing last year were borrowers undertaking projects on energy efficiency, and renewable energy. The bank has set an ambitious target of transitioning 25 percent of its total loan portfolio to green investments by next year as part of its Net Zero ambition.

“In 2023, we made a bold commitment to address the climate crisis by allocating over Kes21 Billion to green finance initiatives; aimed to create a real and tangible impact on our environment and communities," Group CEO Paul Russo said.

"Our green finance initiatives are proof that profitability and sustainability can go hand in hand. By supporting renewable energy, energy efficiency, and sustainable agriculture, KCB is not just participating in climate action—we are leading it," he added.

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Additionally, KCB said it committed to lowering its carbon footprint by among others, offsetting emissions through the planting of trees. Last year, the bank planted over 300,000 trees in Kenya and seeks to plant 1.2 million trees by the end of 2024.

Furthermore, the sustainability report notes that the bank achieved an 11.14 percent reduction in carbon footprint intensity per staff member even as it increased the installation of LED lighting by 50 percent to optimize the usage of resources.

“As we confront the pressing challenges of climate change, it is crucial that we all play our part. KCB’s investments in green finance, reforestation, and sustainable development demonstrate that financial institutions can lead this effort,” said Aden Duale, CS Ministry of Environment, Climate Change and Forestry during the launch.

"The government is committed to supporting such initiatives that align with our national goals of environmental conservation, climate resilience, and inclusive growth," added CS Duale.

KCB has become the first financial institution in Africa to assure its report through external auditors, ushering in a new era of transparency and ESG disclosures.

CEO Paul Russo said: “ We are proud to announce the release of the first assured report, setting a new standard in ESG reporting in Africa. This report confirms that our key performance indicators and metrics accurately reflect the bank's performance, enhancing transparency and accountability."

"This is borne from a belief that by aligning business practices with sustainability principles, financial institutions can drive long-term value creation, enhance their reputation, and mitigate risks associated with environmental and social challenges.”

KCB has also expanded its focus to encompass 14 Sustainable Development Goals (SDGs), enhancing its efforts to tackle a wide array of global challenges.

A notable initiative includes the bank's calculation of its financed emissions for 2023, including Scope 3 emissions, by concentrating on its primary carbon-intensive sectors.

Last year, the bank supported 2,877 youth through entrepreneurship incubations under the 2jiajiri programme, creating 13,352 direct jobs. Additionally, KCB extended Kes115 billion in loans to women-owned businesses, empowering female entrepreneurs and advancing gender equality.

The bank also disbursed Kes100 billion in loans to Micro, Small, and Medium Enterprises (MSMEs), which are essential drivers of economic development in the region.

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