Cooperative Bank, KCB, and Absa Bank emerged as the top three overall winners in the sustainable finance awards, securing the 1st, 2nd, and 3rd positions respectively on the event held on 20 November 2024. This is the fifth time Cooperative bank has been named the winner in sustainable finance. The award was created to recognize institutions that practice sustainable finance which has a direct positive impact on the financial sector, economy, environment and the society at large.
In 2024, the awards attracted 49 entries from banks, a rise from 43 submissions in 2023. KCB was named the best bank in sustainable finance, followed by Absa and NCBA in the 2nd and 3rd positions respectively. In the “Best Bank Case Study (Operations)” category, Diamond Trust Bank claimed the top spot, with Cooperative Bank and I&M Bank taking 2nd and 3rd places. For the “Best Case Study in Retail MSME,” Cooperative Bank, National Bank, and Sidian Bank ranked 1st, 2nd, and 3rd respectively.
During the award ceremony, the Kenya Bankers Association (KBA), in collaboration with IFC and WWF-Kenya, launched revamped Sustainable Finance Guiding Principles and unveiled the Landscape of Sustainable Finance in Kenya’s Banking Industry report. These initiatives aim to advance financial inclusion and sustainability within Kenya’s banking sector.
The Sustainable Finance Guiding Principles, developed with support from IFC, provide a comprehensive framework for integrating Environmental, Social, and Governance (ESG) considerations into banking operations. By aligning with global standards, these principles promote responsible lending, sustainable investments, and innovative financial solutions that address Kenya’s socio-economic and environmental challenges.
The WWF-supported Landscape Report highlights progress and obstacles in sustainable finance. Gross loans in 11 key sectors grew by 23.0% since 2020. However, challenges such as high costs for sustainability-linked bonds, inconsistent reporting, and limited data standardization remain. Raimond Molenje, Acting CEO, Kenya Bankers Association, commented, “The Sustainable Finance Initiative has empowered over 50,000 bank employees to make lending decisions that balance environmental, social, and economic benefits. The revamped guiding principles enhance governance and risk management, fostering innovation and financial inclusion.” The report also identifies opportunities for growth in green sectors such as agriculture, energy, water, manufacturing, and real estate.
