Absa Bank Advances KES 60B in Sustainable Finance, Pioneering Environmental and Inclusive Growth in 2023

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.

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.
• KES. 36.9B advanced to MSMEs & Women-led businesses.
• KES. 21B advanced to start-ups and youth through Timiza.

Environmental stewardship

• KES. 22.3B 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 KES 2 billion in development of solar-powered projects for off-grid communities.
• Participated in financing Safaricom’s KES 20bn 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 Sport

• Partnered with Athletics Kenya to plant over 2500 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.