Absa Bank Kenya advanced more than KES 204 billion in sustainable finance between 2022 and 2025, as the lender stepped up funding for financial inclusion, enterprise growth, social development and environmental sustainability.
According to the Absa Bank Kenya PLC 2025 Sustainability and Climate Report, the Bank disbursed KES 55.3 billion in sustainable finance in 2025, up from KES 47 billion in the previous year.
The financing included KES 48.8 billion directed towards financial inclusion initiatives supporting small and medium-sized enterprises, women-led businesses, young entrepreneurs and underserved communities.
A further KES 6.5 billion was allocated to climate finance projects, including renewable energy, green buildings, energy efficiency and climate-smart agriculture.
The report showed that eligible sustainable finance accounted for 30% of the Bank’s gross loan disbursements, significantly exceeding its 2025 year-on-year target of 10%.
Speaking during the launch of the report at Strathmore University, Absa Bank Kenya Interim Managing Director and Chief Executive Officer Yusuf Omari said the performance reflected the lender’s commitment to creating shared value for its customers, communities and the wider economy.
“Our 2025 Sustainability and Climate Report highlights what we have achieved under our 2021–2025 sustainability strategy, which was anchored on 13 commitments aimed at delivering meaningful economic, social and environmental impact,” Omari said.
“From supporting businesses to grow and enabling access to affordable housing, to financing climate-smart agriculture, renewable energy and broader financial inclusion, we have intentionally deployed capital where it can make the greatest difference.”
He said the Bank would continue working with customers and other stakeholders to support a more inclusive, resilient and sustainable future for Kenya.
Beyond financing green and inclusive projects, Absa also reported progress in reducing the environmental impact of its operations.
The Bank planted 283,969 trees in 2025, nearly four times the 72,000 planted in 2024, bringing its cumulative total to more than 1.5 million trees.
It also achieved a waste recycling rate of 96.4% and reduced its operational energy footprint by 41% as part of efforts to advance its net-zero ambitions.
The report further highlighted investments in youth employability, entrepreneurship and community development.
Nearly 38,000 young people received employability and entrepreneurial training through Absa’s ReadytoWork programme during the year, increasing the total number of beneficiaries to more than 300,000.
The Absa Kenya Foundation also reached more than 50,000 people through programmes focused on education and skills development, entrepreneurship and natural resource management.
Principal Secretary for Environment and Climate Change Dr Festus Ng’eno commended the Bank for demonstrating private-sector leadership in sustainability and climate action.
“Climate change is already affecting livelihoods, infrastructure, ecosystems and economic productivity. The cost of inaction continues to rise, making climate investment not only an environmental necessity but also a sound economic decision,” Ng’eno said.
He encouraged financial institutions, investors and development partners to expand funding for climate solutions, green enterprises and sustainable infrastructure.
During the year, Absa also strengthened its climate governance and risk management systems by incorporating climate considerations into its business strategy, lending decisions and enterprise risk management processes.
The Bank said the measures would help it support customers operating in an environment increasingly shaped by climate change, technological advancement and changing stakeholder expectations.
The report also includes enhanced sustainability disclosures aligned with the International Sustainability Standards Board framework, including IFRS S1 and IFRS S2.
Absa said the disclosures were intended to strengthen transparency and accountability in the management of sustainability and climate-related risks.
Following the completion of its 2021–2025 Sustainability Strategy, the Bank announced a new strategy anchored on four pillars aimed at accelerating growth, improving efficiency and enhancing customer experience.
The first pillar seeks to ensure that at least 30% of gross loan disbursements support financial inclusion, green finance and nature-based finance initiatives.
The second focuses on achieving net-zero emissions by 2050 through a comprehensive decarbonisation programme.
The remaining pillars will strengthen sustainability risk management and governance, while embedding sustainability into the Bank’s culture and customer experience.
“As Kenya accelerates its transition towards a greener and more inclusive economy, Absa will continue partnering with government, businesses, development partners and communities to finance solutions that create lasting value and contribute meaningfully to the country’s long-term development priorities,” Omari said.
