KCB Group Plc has significantly ramped up its commitment to sustainable finance, revealing that it assessed Ksh. 578.3 billion worth of loans for environmental and social risks in the past year. This crucial due diligence effort brings the Group’s cumulative total of screened loans since 2020 to over Ksh. 2.5 trillion.
The details are highlighted in the recently launched 2024 KCB Group Sustainability Report, which outlines the bank’s progress in climate action, financial inclusion, and community development.
KCB’s green lending portfolio saw substantial growth, with the bank disbursing Ksh. 53.2 billion in green loans. This boosted the total green portfolio to 21.32%, up from 15% in 2023.
The funding supports green products designed for the energy transition, including initiatives in:
- Blue Economy
- E-mobility
- Climate Change Adaptation
Crucially, KCB is prioritizing transparency: nearly half of the disbursed amount (Ksh. 24.1 billion) has been verified using the Climate Assessment for Financial Institutions (CAFI) reporting tool.
Paul Russo, KCB Group CEO, underscored the bank’s strategic shift: “The conversation today must be aligned to how we safeguard the Planet and People even as we pursue Profits… We have learned that sustainable practices should also be economically viable in the long run.”
KCB’s commitment extends beyond its lending portfolio:
- Supplier Inclusion: Ksh. 913 million (7.5%) of supplier contracts were allocated to businesses owned by special interests’ groups.
- Carbon Footprint: The Group achieved a 4% reduction in overall resource consumption and offset 1.3 metric tonnes of carbon equivalent, largely through the planting and growing of 1,386,203 trees.
- Project Funding: KCB Bank Kenya secured a Ksh. 69 million Project Preparatory Facility from the Green Climate Fund, a vital step in its pursuit of Ksh. 15.5 billion in funding to advance its sustainability agenda.
Dr. Eng. Festus Ng’eno, Principal Secretary for the State Department for Environment and Climate Change, lauded KCB’s efforts, noting that the bank has supported KShs 160 billion worth of green projects cumulatively.
Rooted in its inclusive transformation agenda, KCB Group is tackling societal challenges through the KCB Foundation’s enterprise development program, 2Jiajiri:
- Youth MSME Funding: Ksh. 2.58 billion was disbursed as loans to 4,000 youth-owned MSMEs, with 38% being women-led businesses.
- Job Creation: The program supported a total of 37,078 businesses, resulting in the creation of over 60,686 jobs and equipping 9,699 youths with critical business skills.
- Farmer Uplift: The Mifugo ni Mali Programme uplifted over 2,000 farmers and entrepreneurs in ASAL counties, including 913 in the blue economy sector.