Absa Bank Kenya advanced over KES 60 billion in sustainable finance in 2023

By Monica MUEMA

Absa Bank Kenya PLC advanced close to KES 60 billion in sustainable finance in 2023, highlighting the Bank’s ongoing commitment to driving sustainable development.

This figure, contained in the Bank’s Sustainability Report for the financial year ended December 31, 2023, is made up of KES 22.3 billion advanced as climate and sustainability-linked finance and KES 36.9 billion in inclusive finance. The report is themed, ‘Banking on a Better, Sustainable Future.’

Under climate finance, KES 14.1 billion was advanced towards renewable and clean energy, KES 2.9 billion was advanced to green building and KES 2.2 billion towards climate smart agriculture financing and other sustainability-linked lending.

On the other hand, KES 21 billion was advanced to individuals and small businesses through Absa’s virtual banking platform Timiza, while KES 11 billion was loaned to Micro Small and Medium Enterprises with an additional KES 4.9 billion to women entrepreneurs, all classified as inclusive finance.

While Absa Bank Kenya PLC Managing Director & CEO, Abdi Mohamed reaffirmed the Bank’s commitment to operating in a manner that is not only profitable but also responsible, ethical, and aligned with the broader needs of society.

“In today’s world, our stakeholders – whether they are investors, regulators, or customers – expect more from us. They want to see the bigger picture, understanding not only how we create value for our shareholders but also the broader impact we have on society and the environment”, he said.

The report also highlights the notable strides the Bank has made in combating climate change. In the year under review, in partnership with various organizations, the Bank grew 728,095 trees, accelerating its commitment to plant 10 million trees by 2032.

Speaking at the event, Dr. Eng. Festus Ng’eno, the Principal Secretary, State Department of Environment and Climate Change said: “The financial sector plays a pivotal role in shaping the trajectory of our nation’s development. Banks are not merely financial intermediaries; they are the lifeblood of our economy.

Absa’s dedication to integrating sustainability into its core operations sets a precedent for other financial institutions and indeed, for all sectors of the economy.”

“At Absa Bank, our commitment to creating a sustainable future for all is pegged on our brand purpose of empowering Africa’s tomorrow, together one story at a time. We remain committed to providing sustainable financial solutions that support businesses, hence facilitating economic growth.

Our sustainability journey is a testament to our commitment to making a positive impact on society and the environment. We are proud of what we have been able to accomplish, but we are cognizant that there is still much to be done”, Mr Mohamed added.