KCB Group disbursed more than double the green loans in 2024, emerging among the leaders in the competition among banks to green up their loan portfolios. The lender advanced Sh53.2 billion in the period to December 2024 to different customers undertaking various projects, up from Sh22.1 billion in 2023, a growth of 140 per cent.
Kenyan banks are racing to increase the amount of loans advanced to environmentally friendly projects as the country and the world battle to minimize the impact of climate change by increasingly financing to less harmful projects.
As part of accelerating its climate commitment and increasing climate flows, KCB has committed to directing 25 per cent of the total loan portfolio to green investments by 2025,” disclosed the bank in its integrated annual report for the 2024 financial year.
In April, the Central Bank of Kenya (CBK) gave commercial banks 18 months to start disclosing their exposure to climate-related risks from projects and companies they finance.
CBK issued the directive alongside its launch of the Kenya Green Finance Taxonomy (KGFT) and the Climate Risk Disclosure Framework, encouraging banks to adopt more sustainable practices and report on their environmental and social impact.
Following the CBK directive, the Kenya Bankers Association (KBA) is in the process of training its member banks on how to implement the new standards and reporting templates.
