Coop Bank team comprising Head of investor Relations & Strategy Veronica Njore, ESG Analyst Euginia Nyamongo, Manager, Investor Relations & Strategy Ben Muriuki, Director Finance & Strategy Caroline Karimi and Director Transformation Andrew Wanjau with trophy haul at this year’s Sustainable Finance Catalyst Awards where Coop Bank was named the Overall Winner
The Kenya Bankers Association (KBA), in collaboration with IFC and WWF Kenya have today launched the revamped Sustainable Finance Guiding Principles and the Landscape of Sustainable Finance in Kenya’s Banking Industry Report as part of ongoing efforts to deepen financial inclusion and sustainability within Kenya’s financial services sector.
Developed with IFC’s support, the revamped Sustainable Finance Guiding Principles provide a robust framework for banks to integrate Environmental, Social, and Governance (ESG) considerations into their operations. Alignment with global standards fosters responsible lending, sustainable investments, and innovative financial solutions that address Kenya’s socio-economic and environmental challenges.
The Landscape Report, supported by WWF-Kenya, highlights key achievements and challenges in sustainable finance. The report indicates that gross loans across 11 key sectors grew by 23 percent since 2020, reaching Sh3.6 trillion in 2022, with MSMEs receiving Sh783.3 billion. However, the report cites challenges such as high costs for sustainability-linked bonds, inconsistent sustainability reporting, and limited data standardization persist. The report identifies opportunities for further investment in green growth sectors, including agriculture, energy, water, manufacturing, and real estate.
“Sustainable business models and green financing are not mere trends—they are essential pathways for ensuring long-term economic stability and environmental stewardship. By integrating sustainability into our lending and investment decisions, we can help mitigate climate risks, support green projects, and grow our economies while safeguarding the future of our planet.” – Betty Korir, Kenya Bankers Association Vice Chairperson
“The Sustainable Finance Initiative has enabled over 50,000 bank employees to make lending decisions that benefit the environment, society, and economy. With the revamped guiding principles, the banking industry is better equipped to adopt best practices in governance and risk management, further driving innovation and financial inclusion.” – Raimond Molenje, KBA Ag. CEO
‘’Kenya is endowed with rich natural resources, a dynamic entrepreneurial spirit, and a robust financial sector that provides a unique platform to champion sustainability. However, with these opportunities come significant responsibilities to adopt an integrated approach that aligns economic activities with the sustainable development agenda. WWF-Kenya will continue to collaborate with the Kenya Bankers Association because we believe in a future of financial prosperity grounded in sustainability – a safe legacy that connects people, nature, and the economy.’’— Mohamed Awer, WWF-Kenya Chief Executive Officer.’’
‘’Application of the SFI principles is important for Kenyan banks as it will promote financing for renewable energy, energy efficiency, sustainable agriculture, and other eco-friendly projects. It will also encourage banks to support projects that enhance social inclusion, gender equality, affordable housing, healthcare, and education. Finally, it will help banks manage environmental and social risks, making informed decisions to protect financial stability’’. — Mary Potter Peschka, IFC Regional Director.
“We recognize that climate change impacts how financial institutions perceive risks especially in the agricultural sector. Therefore, our partnership will enable financial institutions to implement sustainable financing options such as blended finance for investments into nature-based solutions that benefit the planet, beneficiaries, and the financial institutions.’’— Sophia Baumert, Project Manager, Sustainable Agricultural Systems and Policies (AgSys)
During the summit, 26 banks were recognized for their excellence in adopting sustainable finance practices as follows:
Overall, Winners
1st Place: Cooperative Bank
2nd Place: KCB Bank
3rd Place: ABSA Bank
Winners in Each Category
Best in Sustainable Finance: KCB Bank (1st), ABSA Bank (2nd), NCBA Bank (3rd)
Best Case Study – Retail MSME: Cooperative Bank (1st), National Bank of Kenya (2nd), Sidian Bank (3rd)
Best Client Case Study – Commercial: Cooperative Bank (1st), KCB Bank (2nd), Stanbic Bank (3rd)
Best Bank Case Study – Bank Operations: Diamond Trust Bank (1st), Cooperative Bank (2nd), I&M Bank (3rd)
Best Client Case Study – Promoting Gender Inclusivity: KCB Bank (1st), KWFT Bank (2nd), Cooperative Bank (3rd)
Best Bank Case Study – Promoting PWD Accessibility: KCB Bank (1st), ABSA Bank & CO-OP Bank (tie for 2nd), DIB Bank (3rd)
Most Innovative Bank: ABSA Bank & CO-OP Bank (tie for 1st), Equity Bank (2nd), I&M Bank (3rd)
Most Improved Bank: DIB Bank Kenya (1st ) DTB Bank( 2nd) Credit Bank (3rd)
In 2024, a total of forty-nine entries were submitted by banks, an increase from forty-three in the year 2023. The judging panel for the Sustainable Finance Catalyst Awards constitutes the following: