Absa Kenya banks on sustainability funding

Absa Kenya has aggressively continued to intensify its investment in sustainability – channelling Ksh.47 billion specifically into sustainability-linked and climate-related financing.

The funds were channelled to businesses, households, and sectors where they can generate socio-economic value.

Absa recently released the 2024 Sustainability and Climate Report – highlighting its focused journey towards sustainability and financing.

Themed ‘Rooted in purpose, growing with impact’, the report highlights how Absa is increasingly infusing sustainability across its robust business. The report outlined significant progress Absa has made in this regard.

Absa Bank Kenya Chairman Charles Muchene noted that the lender is keen on enhancing sustainable financing.

“This financing is about empowering stories of resilience and inclusive development. As Absa, we are proud of our contribution to building a greener, fairer economy in Kenya,” said Mr. Muchene.

“The 2024 Sustainability and Climate Report reflects the bank's continued evolution towards sustainability maturity and greater alignment with global standards,” noted Mr. Muchene.

Adding that: “It marks the early stages of adopting the International Sustainability Standards Board (ISSB) guidelines, IFRS S1 and S2, which are poised to become the global benchmark for sustainability disclosures. We see this as a necessary shift to build investor confidence and comparability.”

In 2020, Absa Bank set out its 13 sustainability commitments, which the lender maintains have served as a clear compass, guiding how it approaches climate risk, ESG integration, and broader value creation.

The lender is reviewing and strengthening the 13 sustainability commitments in 2025, in line with the emerging global and local developments.

Absa CEO Abdi Mohamed noted that their efforts towards sustainable financing are translating into tangible results; from inclusive lending and supply chain empowerment to financing solutions that actively support Kenya’s transition to a low-carbon, climate-resilient economy.

“Sustainability is now a business imperative. Over the past three years, we have embedded it as a core lens through which we evaluate risk, opportunity, and long-term impact,” said CEO Mohamed.

“Our most powerful lever for change lies in inclusive finance, ensuring that capital reaches those traditionally excluded from opportunity. In 2024, we disbursed Ksh.47 billion in sustainable finance, including Ksh.25.1 billion through Timiza, Ksh.9.6 billion to MSMEs, Ksh.1.4 billion to low-income households, Ksh.1.1 billion to women-led enterprises, and Ksh.5.8 billion to youth aged 18-35,” said CEO Mohamed.

The CEO singled out the Eco-Home Loan as one example of how the lender is taking this forward, adding that their focus is on creating shared value across the ecosystem and accelerating action towards 2030 and beyond.