Absa Bank Kenya PLC advanced close to Kshs 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 Kshs 22.3 billion advanced as climate and sustainability-linked finance and Kshs 36.9 billion in inclusive finance. The report is themed, ‘Banking on a Better, Sustainable Future.’
Under climate finance, Kshs 14.1 billion was advanced towards renewable and clean energy, KES 2.9 billion was advanced to green building and Kshs 2.2 billion towards climate smart agriculture financing and other sustainability-linked lending.
In addition, Kshs 21 billion was advanced to individuals and small businesses through Absa’s virtual banking platform Timiza, while Kshs 11 billion was loaned to Micro Small and Medium Enterprises with an additional Kshs 4.9 billion to women entrepreneurs, all classified as inclusive finance.
Absa Bank Kenya PLC Managing Director, Abdi Mohamed says: “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.”
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.
Environment and Climate Change, Principal Secretary, Dr. Festus Ng’eno, 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.”
Mohamed added: “At Absa Bank, 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.”
Key highlights
Financial inclusion
- 35,000 women entrepreneurs empowered through the See Her Empowered (SHE) Star programme.
- 14,000 entrepreneurs empowered through business growth training and capacity building.
- Kshs 36.9 billion advanced to MSMEs & Women-led businesses.
- Kshs 21 billion advanced to start-ups and youth through Timiza.
Environmental stewardship
- Kshs 22.3 billion Climate finance in renewable energy, green building and agriculture
- 728,095 trees grown through partnerships with customers, communities and partners.
- Reduced operational carbon emissions by 8% in line with our ambition to achieve Net zero status by 2050.
- 85 sites retrofitted sizes with energy saving technology, with 5 certified as green buildings.
- Partnered with SunKing to invest Kshs 2 billion in development of solar-powered projects for off-grid communities.
- Participated in financing Safaricom’s Kshs 20 billion sustainability-linked loan.
Social impact initiatives
- 72,000 students empowered in digital literacy through Computer for Schools
- 20,274 youth impacted through Ready2Work initiative, bringing a total of 252,000 youth since the programme was launched.
- 3500 hours of colleague volunteership in community work
- 51:49: Women to men gender split across the organisation with 40:60 in leadership.
- Top Employer 3 years in a row with 100% colleagues trained on future skills
Sustainability in sporting activities
- Partnered with Athletics Kenya to plant over 2,500 trees at the Kasarani Stadium during Absa Kipkeino Classic Tour.
- Birdies for Trees initiative: committed to plant 100 trees for every birdie scored at the Magical Kenya Open.