Co-op tops KBA awards as lenders embrace sustainable practices
Business
By
Graham Kajilwa
| Nov 16, 2023
Co-operative Bank of Kenya emerged the overall winner in this year's Sustainable Finance Catalyst (SFI) Awards organised by the Kenya Bankers Association (KBA).
Equity Bank Kenya emerged second overall as Absa Bank Kenya came third.
The awards recognise firms in the banking sector whose efforts aim to create long-term value not only for their clients but also for the environment.
The award ceremony in Nairobi yesterday was graced by Nairobi Securities Exchange Chief Executive Geoffrey Odundo, Financial Sector Deepening (FSD) Kenya CEO Tamara Cook and KBA's Habil Olaka.
READ MORE
Constitutional and fiscal lessons from 2024 Finance Bill protests
Education PS flags possible scrapping of C4 schools
Witness says Bliss Hospital locked out Rex Masai during June 2024 protests
Jilted lover attacks woman in Bungoma
Pilot, co-pilot killed in LaGuardia runway collision
A free lecture for those who want professors to retire early
How NARC resuscitated imperial presidency that Kenyans loathed
KNEC opens KCSE registration for 8-4-4 candidates
Mr Odundo said as banks pursue profitability, the business environment is changing with investors becoming more interested in sustainable business services to guide their decisions.
"How you handle environmental, social and corporate governance becomes a key parameter for you to get any funding," he said.
"We are seeing investors coming for business opportunities but we also see others migrating because they want institutions and companies that are conscious on climate risks."
He said the SFI awards are a good commitment of the sector towards sustainability.
The awards sponsored by FSD Kenya had eight categories. Absa Bank Kenya was the winner in the Best Sustainable Finance and Best Bank Operation categories.
Equity Bank Kenya emerged as the best in the Retail MSME category.
Best Client Case Study-Commercial category was won by Co-operative Bank of Kenya which also won Most Innovative Bank, Best Client Case Study -Gender Inclusivity and emerged best as well in Promoting Persons with Disabilities Accessibility category.
Ms Cook underscored the key role sustainability has to play in the current economic challenges citing it as the breakthrough path for financial institutions.
"We are in tough times now, in Kenya and globally, due to the inflation rate, interest rates and the whole economic situation; everything is tough. "But it is tougher for people who are affected by climate change in arid and semi-arid lands and remote regions."
She said sustainability is the way out for financial institutions and if they can reconfigure their credit scores to intentionally target small enterprises, women and agriculture, then their business can last beyond the trying period.
"Sustainability will give you the competitive edge to last the tough times," said Cook, adding that banks have struggled to reach these populations because they do not understand their risks.
KBA chief executive Olaka said the industry has played a leading role in encouraging sustainable operations.
He quoted the Sustainable Finance in Kenya Banking Business Report 2020, which shows that 85 per cent of banks indicated that their credit policy ensures responsible lending that promotes sustainable development.
The same report also indicated that 76 per cent of banks had integrated environmental and social management systems.
"The statistics are a clear indicator of the encouraging progress the banks have made in addressing sustainable banking practices and managing related risks," he said. Dr Olaka noted, however, that 57 per cent of banks were publishing sustainability reports that were not integrated with their financial results.
"The scale of the negative impact of climate change is increasingly becoming real day after day. We do not have the luxury to sit pretty.
"Transitioning to a low carbon economy is not only inevitable but also urgent."
How Treasury is edging out 'mama mboga' for banks
Kenya’s increased reliance on local borrowing is raising concerns that it is crowding out businesses and households from accessing credit, potentially slowing economic growth.Agoa renewal offers new chance to redefine Africa's place in global trade
As global markets retreat into protectionism and nationalist economic agendas, Africa must hold firm to its integration agenda.Iran war hits kitchens as shilling slumps, forex reserves dwindle
Shockwaves of the conflict are squeezing consumers already battered by years of economic hardship.China woos Kenyan producers with '800-million opportunity' as zero-tariff deal takes effect
China has unveiled a detailed plan to integrate Kenyan producers into its high-tech industrial chains.Co-op bank shares set for further gains on strong profit growth, lower rates
Tier one lender Co-operative Bank of Kenya (Co-op Bank) shares could rise nearly a quarter over the next 12 monthsMOST READ
- Agoa renewal offers new chance to redefine Africa's place in global trade
OPINION
By Paul Russo
- Iran war hits kitchens as shilling slumps, forex reserves dwindle
BUSINESS
By Brian Ngugi
- China woos Kenyan producers with '800-million opportunity' as zero-tariff deal takes effect
BUSINESS
By Brian Ngugi