Absa Bank Kenya PLC has released its 2024 Sustainability and Climate Report, outlining significant progress in environmental action, inclusive finance, and governance maturity.
As part of this journey, the Bank has unveiled Kenya’s first Eco-Home Loan, offering up to 110 percent financing to help customers build or upgrade homes with energy-efficient and climate-resilient features.
Themed ‘Rooted in Purpose, Growing with Impact,’ the report showcases how Absa is embedding sustainability across its business with the key highlight, the Eco-Home Loan, which empowers customers to make climate-conscious upgrades such as installing solar panels and water and energy-saving systems and using sustainable building materials thereby aligning home ownership choices with Absa’s commitment to a just, inclusive transition.
In addition to financial inclusion with a central focus, the bank disbursed Sh47 billion in sustainable finance targeting Micro, Small and Medium Enterprises (MSMEs), women- and youth-led enterprises, and underserved segments.
Of this, Timiza, Absa’s digital lending platform, accounted for Sh 25.1 billion, reinforcing the role of digital infrastructure in closing access gaps.
Commenting on the report, Absa Bank Kenya Chairman Charles Muchene observed that the 2024 report reflects Absa’s continued evolution towards sustainability maturity and greater alignment with global standards.
Further, he noted that the report marks the early stages of adopting the International Sustainability Standards Board (ISSB) guidelines, IFRS S1 and S2 which are poised to become the global benchmark for sustainability disclosures. “We see this as a necessary shift to build investor confidence and comparability,” claimed Muchene.
Notably, on climate action, the Bank also reported a 38 percent reduction in Scope 2 emissions (from purchased electricity) compared to the 2019 baseline, driven by retrofitting and smart metering across its premises. For 2024, 2,745 kilograms of waste were recycled, with a 94 percent recovery rate helping avoid close to 7 tons of CO₂-equivalent emissions.
Additionally, Absa has also planted over 1.5 million trees to date as part of its reforestation efforts.
“Sustainability is now a business imperative. Over the past three years, we have embedded it as a core lens through which we evaluate risk, opportunity, and long-term impact,” affirmed Absa Kenya Chief Executive Officer (CEO) Abdi Mohamed.
Speaking during the event, the CEO disclosed that the move is now translating into tangible results from inclusive lending and supply chain empowerment to financing solutions that actively support Kenya’s transition to a low-carbon, climate-resilient economy.
“The Eco-Home Loan is one example of how we are taking this forward,” he stated.
Meanwhile, as a force for good, through the Absa Kenya Foundation, the bank consolidated community programmes, investing Sh107 million in citizenship and financial literacy programs.
Likewise, more than 11,000 youth were trained through the bank’s Ready to Work platform, while 635 staff members participated in community outreach initiatives valued at Sh41 million.
Internally, Absa maintained strong performance on inclusion, with a 51:49 female-to-male ratio and continued Top Employer recognition. Governance systems were further recognized as strengthened through board-level oversight of climate risk and sustainability disclosures, approval of a greenwashing policy, and alignment with CBK’s Climate Risk Guidelines and Kenya’s Green Finance Taxonomy.
“As a purpose-led business, our focus is on creating shared value across the ecosystem. This report signals our ambition to accelerate action towards 2030 and beyond,” announced Mohamed.
By Michael Omondi
