Stanbic Holdings Plc has announced a monumental investment of over Sh100 billion into projects, solutions, and initiatives that promote sustainability, MSMEs, and trade in Kenya and South Sudan throughout 2023. This information was disclosed during the unveiling of the Group’s 2023 Sustainability Report, which outlines the significant positive impacts the Group has made on society, the environment, and the economy during the year.
Speaking at the launch, Group Managing Director and CEO Joshua Oigara highlighted Stanbic’s dedication to driving growth in Kenya and South Sudan. “Tied to its purpose to drive growth in Kenya and South Sudan, we invested in green projects, facilitated trade and investment, developed sustainable finance solutions, improved financial inclusion, and empowered the community through health, education, and SME initiatives,” Oigara said.
Environmental Commitment
Under the environment pillar, Stanbic demonstrated a strong commitment to climate change mitigation and adaptation. This included issuing sustainability-linked loans amounting to $122 million (approximately Sh15 billion). In addition to financial investments, the bank undertook initiatives to educate clients on Environmental, Social, and Governance (ESG) principles and successfully recycled 95 percent of its internal waste.
Social Impact
Stanbic’s social initiatives focused on accelerating the growth of small businesses, advancing affordable housing access, and implementing a school feeding program. The bank also made strides in healthcare by providing free cancer screening services and enhancing digital literacy across Kenya. “These initiatives created jobs, drove income growth, and improved access to quality education and health services,” Oigara noted.
Governance and Inclusion
In the realm of governance, Stanbic strengthened its internal frameworks by integrating diversity and inclusion across the Group. Notably, the bank achieved a 38 percent female representation in senior management and at the board level. “Sustainability is a core element of our operations. In the past year, we made significant progress in integrating ESG principles into our core operations, which aligns with our goal to build a sustainable future for all,” Oigara stated.
Strategic Focus for the Future
Looking ahead, Stanbic remains committed to impactful and sustainable growth in Kenya and South Sudan. “In the next three years, our focus will be on sustainable financing that empowers marginalized groups, accelerates socio-economic development, and contributes to climate adaptation and mitigation,” Oigara emphasized.
Priscilla Were, the head of sustainability at Stanbic Bank, reiterated the bank’s dedication to embedding sustainability into their strategy. “We have geared processes, solutions, and initiatives towards creating shared value for stakeholders,” she said. By the end of 2023, green and sustainability-linked facilities comprised about 8 percent of the Group’s lending portfolio. Were highlighted the bank’s ambitions for 2024, which include expanding their green lending portfolio, entrenching financial inclusion, deepening climate action, and enhancing ESG alignment across all business units.
Partnerships and Community Engagement
In 2023, Stanbic scaled its impact initiatives through partnerships with various stakeholders in government, the private sector, Development Finance Institutions, and civil society. Notable partnerships included collaborations with the United States African Development Foundation (USADF) and the German Agency for International Cooperation (GIZ) to foster SME growth and economic empowerment. To date, the Stanbic Foundation has provided concessional loans totaling Sh119 million.
During the same period, Stanbic disbursed Sh40 billion in loans to small businesses, bolstering their capacity to grow and create jobs. As part of the event, Stanbic awarded fourteen winners from the 4th cohort of the USADF and Stanbic Kenya Foundation Grant Fund, who will collectively receive $700,000 (Sh90.3 million).
Focus Areas
Stanbic Holdings focuses on four key impact areas: enterprise growth and job creation, infrastructure development and the just energy transition, climate change mitigation and resilience, and financial inclusion. These areas guide the bank’s efforts to create meaningful, sustainable impact across the regions it serves.
In conclusion, Stanbic Holdings Plc’s extensive investment in ESG initiatives in 2023 underscores its unwavering commitment to sustainable development. Through strategic financial investments, educational programs, and robust partnerships, the bank is driving positive change in Kenya and South Sudan, fostering economic growth, social well-being, and environmental stewardship.
