Absa Bank Kenya Unveils 2024 Sustainability Report, Launches Kenya’s First 110% Eco-Home Loan

Absa Bank Kenya PLC has published its 2024 Sustainability and Climate Report, detailing major strides in environmental action, inclusive finance, and governance. Central to this year’s milestones is the introduction of Kenya’s first Eco-Home Loan, offering up to 110% financing to help customers build or upgrade homes with energy-efficient and climate-resilient features.

Themed “Rooted in purpose, growing with impact”, the report underscores Absa’s drive to embed sustainability across its operations. The Eco-Home Loan enables homeowners to invest in climate-conscious upgrades such as solar installations, water- and energy-saving systems, and sustainable building materials, aligning personal housing choices with the bank’s broader vision for a just, inclusive transition.

The bank also placed financial inclusion at the heart of its agenda, disbursing KES 47 billion in sustainable finance to micro, small, and medium enterprises (MSMEs), women- and youth-led businesses, and underserved communities. Absa’s digital lending platform, Timiza, contributed KES 25.1 billion to this total, highlighting the role of technology in bridging financing gaps.

Speaking during the report’s release, Absa Bank Kenya Chairman Charles Muchene emphasised the institution’s commitment to aligning with emerging global sustainability standards. He noted the bank’s early adoption of the International Sustainability Standards Board (ISSB) guidelines — IFRS S1 and S2 — which are set to become the international benchmark for sustainability disclosures. “This is a necessary shift to build investor confidence and comparability,” he said.

On climate action, the report shows a 38% reduction in Scope 2 emissions from purchased electricity compared to the 2019 baseline, achieved through retrofitting and smart metering in bank premises. In 2024, Absa recycled 2,745 kilograms of waste, achieving a 94% recovery rate and preventing nearly seven tonnes of CO₂-equivalent emissions. The bank has also planted more than 1.5 million trees as part of its reforestation programme.

Absa Kenya CEO Abdi Mohamed described sustainability as a “business imperative” now embedded into the bank’s risk and opportunity assessment framework. “This is translating into tangible results — from inclusive lending and supply chain empowerment to financing solutions that actively support Kenya’s transition to a low-carbon, climate-resilient economy. The Eco-Home Loan is just one example,” he said.

Through the Absa Kenya Foundation, the bank invested KES 107 million in community programmes, including citizenship and financial literacy initiatives. More than 11,000 youth were trained via the ReadytoWork platform, while 635 employees took part in outreach activities worth KES 41 million.

Internally, Absa maintained a 51:49 female-to-male workforce ratio and retained its Top Employer status. Governance systems were bolstered through Board-level oversight of climate risk and sustainability disclosures, the approval of a Greenwashing Policy, and compliance with the Central Bank of Kenya’s Climate Risk Guidelines and the country’s Green Finance Taxonomy.

“As a purpose-led business, our focus is on creating shared value across the ecosystem,” Mohamed added. “This report signals our ambition to accelerate action towards 2030 and beyond.”