Tag: KCB Group news

KCB Group: Ksh615 Billion worth of Green Loans screened in 2023

Posted on by Kibaki Muthamia

KCB Group screened loans worth KShs.615 billion for environmental and social risks in 2023 as the Bank races to support projects with positive environmental impacts.

This constitutes half of the Group’s loan book as at the end of last year, cementing KCB’s commitment to sustainable finance.

Additionally, KCB approved green loans worth KShs21.4B representing 15.5% of the total loan portfolio in 2023 and highlights its commitment to community-focused initiatives to create sustainable value for all its stakeholders.

KCB Group CEO Paul Russo(L), Cabinet Secretary, Environment, Climate Change and Forestry Hon. Aden Duale(C)and Principal Secretary, Environment & Climate Dr. Eng. Festus Ng’eno(R) unveil the 2023 KCB Group ESG & Sustainability Report.

The green loans disbursed were directed towards projects in e-mobility, climate change adaptation and mitigation, energy efficiency, and renewable energy.

The details are contained in the 2023 KCB Group Environmental, Social & Governance (ESG) and Sustainability Report launched on Tuesday 20th August- highlighting the Group’s progress towards its sustainability commitment.

KCB Group CEO Paul Russo said:

“We are increasing focus on sustainability and environmental responsibility. We are proud to announce the release of the first assured report, setting a new standard in ESG reporting in Africa.

This report confirms that our key performance indicators and metrics accurately reflect the bank’s performance, enhancing transparency and accountability.

This is borne from a belief that by aligning business practices with sustainability principles, financial institutions can drive long-term value creation, enhance their reputation, and mitigate risks associated with environmental and social challenges.”

KCB has also expanded its focus to encompass 14 Sustainable Development Goals(SDGs), enhancing its efforts to tackle a wide array of global challenges.

A notable initiative includes the bank’s calculation of its financed emissions for 2023, including Scope 3 emissions, by concentrating on its primary carbon-intensive sectors.

 “In 2023, we made a bold commitment to address the climate crisis by allocating resources to climate action projects, aiming to create a tangible impact on our environment and communities.

For financial institutions, embracing sustainability and ESG principles is not merely a moral obligation but a strategic imperative,” Russo added.

KCB’s commitment to reducing its carbon footprint is further illustrated by its ambitious plans to offset emissions, which include planting over 300,000 trees in Kenya in 2023, with a target of reaching 1.2 million trees by the end of 2024.

Furthermore, the bank achieved an 11.14% reduction in carbon footprint intensity per staff member and increased its installation of LED lighting by 50% to optimize resource usage.

Also in attendance was Hon. Aden Duale, Cabinet Secretary in the Ministry of Environment, Climate Change and Forestry.

The CS adds:

“As we confront the pressing challenges of climate change, it is crucial that we all play our part. KCB’s investments in green finance, reforestation, and sustainable development demonstrate that financial institutions can lead this effort.

The government is committed to supporting such that align with our national goals of environmental conservation, climate resilience, and inclusive growth.”

The Group’s socio-economic initiatives underscore the vital role of ESG factors in fostering inclusive growth.

In 2023, the bank supported 2,877 youth through entrepreneurship incubations under the 2jiajiri programme, creating 13,352 direct jobs.

Additionally, KCB extended KShs. 115 billion in loans to women-owned businesses, empowering female entrepreneurs and advancing gender equality.

Acrobats perform during the launch at The Heart of Kencom, Nairobi.

The bank also disbursed KShs. 100 billion in loans to Micro, Small, and Medium Enterprises (MSMEs), which are essential drivers of economic development in the region.

KCB Group continues to lead the charge in climate action and sustainable development, demonstrating that financial institutions can play a pivotal role in addressing the world’s most pressing challenges while fostering economic growth and social equity.

This is buttressed by the bank’s ambition achieving a target of 25% of its total loan portfolio dedicated to sustainable initiatives by 2025.

KCB prioritizes Sustainability at the 2023 WRC Rally

Posted on by Kibaki Muthamia

The 2023 World Rally Championship (WRC) Rally held in Naivasha from the 22nd to the 25th of June 2023, presented an opportunity to showcase that thrilling events can embrace environmental responsibility.

In the fast-paced world of motorsport, where excitement, speed, and adrenaline reign supreme, KCB, took the center stage to lead the charge towards a greener future. The thrill of watching rally cars zoom through challenging terrains captivates fans around the globe.

However, it is essential to recognize that such events also have negative implications towards the environment. The anticipated emissions, waste generated, and ecological disruptions caused by motorsport activities are significant concerns that cannot be ignored.

Showcasing sustainability at the 2023 WRC held in Soysambu, Naivasha; KCB tent with repurposed furniture and animal artifacts made from recycled metal, embracing the astonishing beauty of waste transformation.

For this reason, days leading to the rally, KCB joined forces with its sponsored drivers, planting a total of 500 trees in Naivasha Boys Boarding Primary School.

This act symbolized commitment to offsetting the rally’s carbon footprint and forged a powerful bond between the drivers and the environment. Beyond the checkered flag, this act instilled a lasting sense of environmental responsibility.

Before the rally, the Bank made a deliberate move to educate and empower its suppliers to integrate ESG practices into their business during the rally and in the future. This was done in line with KCB Group Suppliers’ Code of Conduct to educate the suppliers on how they can mainstream sustainability into their activities for the rally.

Promoting waste segregation at the 2023 WRC held in Naivasha; Color-coded bins positioned at KCB tents for effective waste collection, recycling and proper disposal.

The Code of Conduct aims to have our suppliers run a sustainable business that contributes to the welfare of society and the environment while realizing profits. It requires suppliers to adhere to labor and human rights, ensure a healthy and safe working environment, to have an effective environmental policy and Emergency preparedness and response.

Sustainability was woven into every aspect of the supply chain, ensuring that the event embraced environmentally conscious principles.

As the rally roared to life, the suppliers’ dedication to sustainability took center stage as they played a pivotal role in transforming the rally site into an eco-friendly haven exemplifying the principles of a circular economy.

In a circular economy, the goal is to minimize waste and maximize the value of resources by keeping them in use for as long as possible. Instead of following a linear “take-make-dispose” model, a circular economy aims to close the loop, creating a system where materials and products are reused, repaired, or recycled to create new value.

With ingenious creativity, they repurposed and used recycled materials like pallets, old oil drums, and tires, metal creating stunning decorations and furniture. This not only reduced waste but also showcased the astonishing beauty and functionality that waste and sustainable practices can achieve.

The event set-up was truly remarkable, catching everyone’s attention with strategically positioned eye-catching SDG (Sustainable Development Goals) boxes at the KCB tents. These stylish cubes not only provided seating spaces but also symbolized the goals embraced by KCB.

Serving as a constant reminder, they emphasized the broader social and environmental objectives throughout the event.

Waste management was a priority, with color-coded bins placed throughout the rally site for proper waste segregation and collection. KCB collaborated with WRC marshals to ensure effective waste segregation and collection. This streamlined approach facilitated proper collection, sorting, and safe disposal and recycling of the waste.

KCB Tents at the 2023 WRC Rally showcase sustainable furniture from recycled wood and pallets.

After the event concluded, the unwavering commitment to sustainability was evident as the Naivasha ground was left immaculate. Every piece of waste was diligently collected and disposed correctly.

This thorough process showcased KCB’s and her partners’ dedication to protecting the planet demonstrating enduring environmental sustainability initiatives from beginning to end.

The successful combination of excitement and environmental consciousness in motorsport events has been proven. The efforts of KCB serve as an inspiring testament, encouraging others to embrace sustainability and prioritize the well-being of our planet.

Now is the time to accelerate towards a greener future, leaving behind a trail of excitement and sustainability in every aspect of our lives.

KCB signs African Cross-Border Payment deal to Support Customers

Posted on by Kibaki Muthamia

KCB Group has signed an Africa-wide deal to facilitate settlements of cross-border transactions on the continent.

The agreement signed early this week with the Pan-African Payment and Settlement System (PAPSS) in Accra, Ghana on the side-lines of the Afrexim Bank Annual Meeting, makes KCB the first Bank in East Africa to on board the financial market infrastructure that provides a secure and efficient channel for processing cross-border payments.

KCB Group CEO, Paul Russo said this platform will guarantee speed, affordability, and reliability of transactions, effectively boosting intra-African trade and payments.

“With this agreement, we bring on board our payments and collections expertise spanning over 120 years. This means that our customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies especially when conducting Intra-African trade payments.”

The platform is a centralized Financial Market Infrastructure developed in collaboration with the African Export-Import Bank (Afreximbank) to complement trading under the Africa Continental Free Trade Area (AfCFTA).

It provides an alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities among African countries through a simple, low-cost risk-controlled payment clearing and settlement system.

KCB Group CEO, Paul Russo during the press conference.

“As a Pan-African banking institution, it is our desire to play a bigger role in facilitating trade across Africa and beyond. With such partnerships, we shall be able to settle our own transactions including those for all its subsidiaries as well as for other commercial banks without many hurdles.” Russo said.

The platform will deliver multiple advantages and efficiencies to intra-African trade payments that include a reduction in the duration and time variability of cross-border payments across Africa, support real-time payments, decrease the liquidity requirements of commercial banks for cross-border payments, remove transaction value limits, enable commercial banks to set the applicable exchange rates and strengthen oversight of cross-border payment systems by Central Banks.

The Pan-African Payment and Settlement System network currently consists of at least 8 Central Banks, 28 commercial banks, and six switches.

It has successfully been piloted in the six countries of the West African Monetary Zone and is expected to expand into the five regions of Africa before the end of 2023. Additionally, all African Central Banks are expected to sign up by the end of 2024 while all commercial banks by the end of 2025.