Absa Bank’s Ksh. 63 Billion Sustainability Financing: Major Milestones and Future Plans

Absa Bank Kenya has made significant strides in its sustainability efforts, as highlighted in its 2023 Sustainability Report unveiled in Nairobi. The bank’s commitment to sustainable development and responsible banking, initiated in 2018, has borne considerable fruit, with the allocation of Ksh. 63 billion in sustainable finance over the past financial year.

Out of this substantial allocation, Ksh. 60 billion was utilized, marking a significant step forward in the bank’s sustainability journey. The report reveals that Ksh. 26.1 billion was dedicated to climate finance, with Ksh. 22.3 billion effectively utilized. This effort underscores Absa’s commitment to combating climate change and promoting environmental stewardship. Additionally, Ksh. 36.9 billion was allocated to support inclusive SMEs, while Ksh. 21 billion was channeled into the Timiza initiative.

One of the notable achievements of Absa’s sustainability strategy includes the planting of over 700,000 trees. The bank, in collaboration with its partners, has also introduced a mapping system for these trees to track carbon offsets. This initiative is complemented by the donation of 20,000 bamboo seedlings for the Kiu Wetlands and 10,000 seedlings for the restoration of Kinale Forest. Absa is also spearheading the rehabilitation of a 100-hectare section of the degraded Sorget Forest in Kericho County.

Technological advancements are another cornerstone of Absa’s sustainability strategy. The bank has invested Ksh. 2 billion in technological upgrades, introducing a digital onboarding platform that enables customers to open accounts and transact independently within 12 minutes. This platform is part of Absa’s broader effort to enhance financial literacy and accessibility.

In line with its Sustainability in Sports initiative, Absa has partnered with Athletics Kenya to sponsor the Absa Kipkeino Classic. As part of this sponsorship, the bank has planted over 2,500 trees at the Kasarani Stadium. Additionally, Absa has launched the Birdies for Trees Initiative, committing to plant 100 trees for every birdie scored at the Magical Kenya Open, further reinforcing its environmental commitments.

Absa’s focus on digital literacy is evident in its support for education. The bank, alongside its partners, has fully equipped and furnished 22 computer labs in selected schools. It has also donated Ksh. 25 million to support the establishment of computer labs in primary and secondary schools, providing each with 20 fully networked desktop computers and necessary lab furniture.

The bank’s commitment to empowering women is exemplified by its See Her Empowered (SHE) Star Programme, which has reached over 35,000 women. Additionally, the R2W (Ready to Work) program, launched in 2015, offers a free, self-paced online curriculum that has impacted over 250,000 youth.

Absa’s Climate Smart Agriculture initiative, in partnership with the Eco-business fund, has seen a $10 million investment aimed at promoting climate-smart agricultural practices. The Green Building initiative, in collaboration with Acorn Holdings Limited (AHL), involves a Ksh. 6.7 billion financing deal for the development of 10 Purpose-Built Student Accommodations (PBSA), addressing the pressing student housing deficit.

Charles Wokabi, Absa’s Head of Sustainability, highlighted the bank’s future plans, including rewarding entities engaged in environmentally friendly initiatives. For instance, construction firms developing green buildings may benefit from competitive rates in the future.

Abdi Mohamed, CEO of Absa Bank, expressed optimism about the bank’s sustainability efforts, announcing plans to double the sustainability funding to Ksh. 120 billion in the coming year. This ambitious goal reflects Absa’s commitment to enhancing environmental impact, improving customer experiences, and supporting community development.

Absa Bank Chairman Charles Muchene echoed this commitment, emphasizing the bank’s dedication to achieving the Sustainable Development Goals (SDGs) within the next six years. The bank’s focus on diversity and inclusion is evident, with 15.5% of active suppliers being women, youth, and persons with disabilities. Absa remains steadfast in its efforts to promote financial inclusion and enterprise development among marginalized yet high-potential population segments.

Absa’s substantial investments and initiatives illustrate a robust commitment to sustainability and community support, positioning the bank as a leading force in responsible banking practices and environmental stewardship in Kenya.