NAIROBI, Kenya Oct 2 – KCB Bank has approved green loans worth Sh21.4 billion, representing 15.5 percent of its total loan portfolio, to support environmentally friendly projects, according to its 2023 Environmental, Social, and Governance (ESG) and Sustainability Report, released on Tuesday.
In 2022, the bank screened a record Sh615 billion in clean credits.
KCB Group CEO Paul Russo said that the green loans financed projects in e-mobility, climate change adaptation and mitigation, energy efficiency, and renewable energy.
“We are enhancing our commitment to sustainability and environmental responsibility. We are proud to release our first assured report, setting a new standard in ESG reporting in Africa,” Russo said.
“This reflects our belief that aligning business practices with sustainability principles enables financial institutions to drive long-term value creation, boost their reputation, and mitigate risks related to environmental and social challenges.”
Russo also emphasized KCB’s focus on the 14 Sustainable Development Goals, adding that the bank calculated its financed emissions for 2023 by targeting carbon-intensive sectors to address global challenges.
“In 2023, we made a bold commitment to combat the climate crisis by allocating resources to climate action projects, aiming for a tangible impact on our environment and communities.”
To reduce its carbon footprint, KCB planted over 300,000 trees across Kenya in 2023, aiming to reach 1.2 million trees by the end of 2024. The bank also reduced its carbon footprint intensity per staff member by 11.14 percent and increased LED lighting installations by 50 percent to optimize energy usage.
“KCB’s investments in green finance, reforestation, and sustainable development demonstrate the critical role financial institutions can play in environmental conservation. The government fully supports initiatives aligned with our national goals of climate resilience and inclusive growth,” said Forestry and Climate Change Cabinet Secretary Aden Duale during the report’s launch.
By 2025, KCB aims to allocate 25 percent of its total loan portfolio to sustainable projects.
