KCB Group’s Leading Examples of Advancing Sustainable Finance in Africa

24 February 2025

KCB Group, one of East Africa’s largest financial institutions, has been leading in sustainable finance by integrating Environmental, Social, and Governance (ESG) principles into its businesses. Accredited by the Green Climate Fund (GCF), KCB has made significant progress in aligning its financial products and services with sustainability goals.

Since committing to the UN Principles for Responsible Banking (PRBs) in 2019, the KCB Group has integrated the UN Sustainable Development Goals (SDGs), the Paris Agreement on Climate Action, and other international sustainability frameworks into its operations with the six core principles. Additionally, the Group has identified its impact areas, set ambitious targets, and is actively working towards achieving them.

In 2023, guided by the UNEP-FI PRB Impact Analysis Tool, the Group conducted a portfolio impact analysis focusing on Kenya, Uganda, Tanzania and Rwanda. The overall results show the highest impact in social initiatives.

From 2020 to 2023, KCB Group put forth a three-year strategy, Beyond Banking strategy which has a core focus of enhancing customer experience, promoting digital innovation, and expanding regional presence while maximizing positive impact.

Some of the notable achievements on sustainable finance through this strategy are:

Lending 15% of green loans in the total loan portfolio
Distributing over KShs. 115 billion loans to women owned businesses
Distributing over KShs. 100 billion loans to MSMEs
Screening KShs. 615 Bn of loans under Environmental & Social Due Diligence

The Group has also contributed to youth empowerment via 2 Jiajiri Programme which was launched in 2016. This is an initiative aimed at tackling youth unemployment through job creation and providing vocational training to young people.

The Group's commitment to financing projects with positive environmental and social impacts has positioned it as a leader in green finance, economic empowerment, and social development.

Key Links/Documents:

https://kcbgroup.com/sustainability-page