KCB dishes out Sh336bn green loans in two yearsThursday October 13 2022
KCB Group has disbursed Sh336 billion worth of loans in the last two years for projects that are eco-friendly as the lender deepens its push for sustainable finance.
The financier plans to translate a quarter of its total loan portfolio to green finance by 2025.
The bank says in its Progressive Action for Sustainable Development report that it cut its carbon footprint by 11.25 percent on its premises and reduced resource consumption by 17 percent.
“We are building a business that is more sustainable and keener to manage a new climate future by creating and finding innovative financial solutions to address environmental and social challenges,” said KCB Group chief executive Paul Russo Wednesday.
In April 2021, the lender joined other global banks that represent over 40 percent of global banking assets by signing onto the Net Zero Banking Alliance (NZBA), committing to align its lending portfolio towards achieving net zero carbon emissions by 2050.
Under the commitment, the bank does not finance projects, which carry an unmitigated environmental and social risk that have increased the frequency and magnitude of extreme weather events.
During the period, KCB grew its green portfolio from four percent of the loan book in 2020 to 8.4 percent last year, mainly in real estate, renewable energy, transport, manufacturing, and agriculture sectors.
Early this month, the KCB Bank Kenya inked a deal with IFC to help catalyse the growth of climate finance in Kenya by increasing support for businesses addressing climate change.
Read: KCB secures Sh18 billion IFC credit to fund green projects
Under the deal, IFC will extend a Sh18 billion ($150 million) loan to KCB to fund the growth of the lenders climate finance portfolio especially in the development of energy efficiency projects, renewable energy, climate-smart projects, and green buildings.