Clean energy businesses grab Absa Bank sustainability finance

Absa Bank Kenya has allocated Ksh.63 billion towards sustainable financing, with Ksh.36.9 billion going towards inclusive finance, Ksh.21 billion advanced in loans through Timiza, Ksh.11.2 billion to Micro Small and Medium Enterprises and Ksh.4.9billion for women entrepreneurs.

The bank also allocated Ksh.6.7 billion to green buildings and Ksh.2.2 billion towards climate-smart agriculture financing.

Speaking at the launch of Absa Bank’s 2023 Sustainability Report, Absa Bank Kenya Chairman Charles Muchene reaffirmed the bank’s commitment to creating a sustainable future in line with their brand purpose of empowering Africa’s tomorrow, together one story at a time.

“As a bank, we are working towards a better Kenya and the region. We have updated our sustainability policies to align with climate risk management practices and Global Reporting Initiative (GRI) Standards to ensure we manage climate-related risks and improve our sustainability reporting,” said Mr Muchene.

Absa Bank MD & CEO Abdi Mohamed reaffirmed the bank’s commitment to sustainable financing.

“We believe that by doubling our investment in sustainable finance and channelling more resources into climate action, sustainable agriculture and green financing, we will not only contribute towards a sustainable future but will also drive inclusive economic growth.”

The bank has been at the forefront in promoting financial inclusion, with over 35,000 women entrepreneurs empowered through the See Her Empowered (SHE) Star program, and the Ready2Work program that has reached over 250,000 youths.

The bank has also been keen on inclusion, having developed the Persons with Disabilities roadmap in 2023, with an aim to increase the number of PWD-owned firms among suppliers to reach five per cent by 2025.

This initiative has enabled the bank to identify and support both staff and clients living with disabilities. Additionally, it has offered training and capacity-building programs to support PWDs while ensuring both informational and physical access to its services.

The bank has also invested in e-banking, to ensure accessibility of all the bank’s digital channels.

In line with its commitment to becoming a net-zero organization by 2020, the bank retrofitted 85 of its sites with energy-saving technology, resulting in a 30 per cent reduction of energy usage since 2020. In 2023, an energy-saving rate of 8.3 per cent was achieved as a direct result of the retrofits.