Absa Bank Kenya PLC has launched Kenya’s first Eco-Home Loan, offering up to 110% financing for building or upgrading homes with energy-efficient and climate-resilient features.
The product was announced alongside Absa Bank’s 2024 Sustainability and Climate Report, which details major strides in environmental action, including climate finance and governance maturity. Absa has been pioneering the sustainability journey since 2021 with a focus on giving back to the environment.
Themed “Rooted in Purpose, Growing with Impact,” the 2024 Sustainability report highlights how Absa is embedding sustainability into its business model, with a lending of over 10% to climate finance.
The Eco-Home Loan enables customers to install solar panels, water- and energy-saving systems, and use sustainable building materials, aligning homeownership choices with Absa’s commitment to a just, inclusive transition.
Envisioning financial inclusion at its core, Absa disbursed KES 47 billion in sustainable finance in 2024, targeting MSMEs, women- and youth-led enterprises, and underserved segments. Fronting a testament of excellence, Timiza, its digital lending platform, accounted for KES 25.1 billion, indicating the role of digital infrastructure in bridging access gaps.
Charles Muchene, Chairman, Absa Bank Kenya, said that the 2024 report reflects the evolution towards sustainability maturity and greater alignment with global standards. Pointing out that its not only a testimony of the hands on work plus skills within the team, colleagues and like minded partners.
Mr. Muchene added that this only marks the early stages of adopting the ISSB’s IFRS S1 and S2 guidelines, which are set to become the global benchmark for sustainability disclosures. A shift he revealed as essential to build investor confidence and comparability.
On climate action, the Bank recorded a 38% reduction in Scope 2 emissions (from purchased electricity) compared to its 2019 baseline, driven by retrofitting and smart metering in its premises. It recycled 2,745 kilograms of waste in 2024 with a 94% recovery rate, avoiding nearly seven tonnes of CO₂-equivalent emissions, and has planted over 1.5 million trees to date.
Abdi Mohamed, CEO, Absa Bank Kenya, reiterated that sustainability is now a business imperative and its a trend on global levels that needs more action done towards attaining it than planning.
“We have embedded it as a core lens for evaluating risk, opportunity, and long-term impact, translating into tangible results from inclusive lending and supply chain empowerment,” said Mr. Abdi. This he added woul be geared towards financing solutions that support Kenya’s low-carbon, climate-resilient transition.
“The Eco-Home Loan is a prime example of this commitment,” said Abdi.
Through the Absa Kenya Foundation, the Bank invested KES 107 million in community and financial literacy programmes. Enabling more than 11,000 youth to get trained via its ReadytoWork platform, while 635 employees took part in outreach initiatives worth KES 41 million.
Internally, Absa, in search of gender parity, has maintained a 51:49 female-to-male workforce ratio, sustained its Top Employer recognition, and strengthened governance.
This has been possible with Board-level oversight of climate risk, approval of a Greenwashing Policy, and alignment with CBK’s Climate Risk Guidelines and Kenya’s Green Finance Taxonomy.
Abdi added that as a purpose-led business, the focus is on creating shared value across the ecosystem. This report signals our ambition to accelerate action towards 2030 and beyond.
