Can a bank help a farmer bounce back after a drought or a shopkeeper reopen quickly after a flood? It can - and it should. Climate change is now part of everyday banking in Kenya, but the story is not about blanket price increases. It is about smarter decisions, better products and support that keeps customers resilient.
Climate risk sits in two main categories: physical and transition. Physical risk has two faces. Acute shocks such as floods, storms and heatwaves cause sudden damage and disrupt cash flows.