Absa Bank Kenya has released 2024 Sustainability and Climate Report. The lender introduced Kenya’s first Eco-Home Loan, offering up to 110% financing for homeowners looking to build or retrofit houses with sustainable features.
Think solar panels, rainwater harvesting systems, energy-efficient lighting, and walls made from materials that don’t make the planet sweat. The extra 10% over typical financing is designed to cover those “green upgrades” that can often be a budget stretch for ordinary buyers.
Green building is slowly catching on in Africa, but the high upfront costs can discourage uptake. By essentially funding the full cost (and then some), Absa is removing one of the biggest barriers: financing.
And it’s not just about eco-friendly living spaces. The bank’s KES 47 billion in sustainable finance last year went toward micro, small, and medium-sized enterprises (MSMEs), plus women- and youth-led businesses. Digital lending platform Timiza alone disbursed KES 25.1 billion, proving that smartphones may be as vital to Kenya’s financial inclusion story as bricks and mortar.
Climate Progress on Paper and on the Ground
The report, themed “Rooted in purpose, growing with impact”, details Absa’s progress in cutting its environmental footprint:
- 38% reduction in Scope 2 emissions (electricity-related) since 2019, thanks to smart meters and retrofits.
- 94% recovery rate for recycled waste in 2024, avoiding nearly 7 tonnes of CO₂-equivalent emissions.
- Over 1.5 million trees planted as part of its reforestation drive.
Absa says the report marks the start of adopting the International Sustainability Standards Board’s IFRS S1 and S2 guidelines. These are set to become the global benchmark for sustainability disclosures, offering more transparency to investors and comparability across markets.
Chairman Charles Muchene called the move “a necessary shift to build investor confidence and comparability.” For a market like Kenya, where investor trust is a key ingredient in attracting capital, this could be a significant differentiator.
Community and People Focus
Through the Absa Kenya Foundation, the bank invested KES 107 million in community programmes, training over 11,000 youth via the ReadytoWork platform and engaging staff in outreach projects valued at KES 41 million.
On diversity, the lender is inching toward gender parity (51% female staff) and keeps a Top Employer badge to show for it. It has also formalised governance around climate risk, approving a Greenwashing Policy and aligning with the Central Bank of Kenya’s Climate Risk Guidelines.
If successful, Absa’s Eco-Home Loan could set a precedent for other banks, sparking a wave of green mortgages in East Africa. It may nudge the construction industry toward eco-friendly materials and methods.
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Also Read: How Standard Chartered Is Embedding Sustainability in Kenya’s Economic Transformation
