From Left - Mr. Paul Russo - KBA Chairman & KCB CEO, Betty Korir, Credit Bank CEO & KBA Vice Chairperson, Samson Toniok - CEO, NETFUND, and Raimond Malonje - KBA CEO during the KBA Sustainable Finance Summit
Kenya’s banking industry has unveiled a new framework to guide financial institutions in integrating sustainability into lending, investment decisions and risk management as the country seeks to mobilise more private-sector capital for climate resilience and sustainable economic growth.
The Banking Industry Sustainable Finance Roadmap, developed by the Kenya Bankers Association (KBA) through its Centre for Sustainable Finance and Enterprise Development (CSFED), in partnership with the International Finance Corporation (IFC) and WWF-Kenya, provides an industry-wide framework for embedding sustainability across the banking sector.
The roadmap is designed to strengthen climate and nature-related risk management, improve sustainability disclosures and direct more capital towards green and sustainable investments.
It also seeks to strengthen the ability of financial institutions to identify climate-related financial risks while unlocking opportunities for businesses, particularly micro, small and medium-sized enterprises (MSMEs), to participate in the transition towards a more resilient and inclusive economy.
The launch comes as Kenya seeks to accelerate sustainable development, strengthen its resilience to climate change and mobilise private-sector investment to support environmental and economic priorities.
Principal Secretary in the Ministry of Environment, Climate Change and Forestry Festus Ngeno said the framework was an important step towards strengthening the financial sector’s contribution to Kenya’s sustainable development and climate ambitions.
He called for environmental protection to be treated as a core economic priority, noting that collaboration between government, financial institutions, investors, businesses and development partners would be essential in directing capital towards sustainable investments.
“Environmental protection must be understood not merely as a conservation responsibility, but as an essential part of our economic planning and long-term prosperity,” Eng. Ngeno said.
He added that Kenya’s development ambitions would require stronger collaboration among national and county governments, financial institutions, development finance institutions, investors, businesses and development partners.
KBA Chairman and KCB Group Chief Executive Officer Paul Russo said the roadmap would help the banking industry move beyond sustainability commitments towards practical implementation.
“The roadmap offers an opportunity to consolidate the industry’s progress and set a more practical direction for the next phase of our sustainable finance journey. It is intended to help translate our ambitions into an action plan that can guide financial institutions in directing capital towards green and sustainable projects, managing nature- and climate-related financial risks, and strengthening sustainability practices,” Russo said.
KBA Chief Executive Officer Raimond Molenje said the framework brings together ongoing industry initiatives while providing clearer direction on how banks can accelerate the adoption of sustainable finance.
“For financial institutions, this means strengthening the integration of sustainability into governance, risk management, reporting and capital allocation,” Molenje said.
IFC Regional Director for Eastern Africa Mary Porter Peschka described the initiative as a milestone for Kenya’s financial sector, particularly in mobilising capital towards sustainable development priorities.
She said the framework would support stronger climate and nature risk management, improved sustainability disclosures and increased investment in projects that promote sustainable economic growth.
“IFC is proud to have partnered with KBA on this journey and we look forward to supporting the next phase of implementation,” Peschka said.
WWF-Kenya Chief Executive Officer Jackson Kiplagat said the roadmap marked a shift from policy commitments and voluntary sustainability initiatives towards measurable action by financial institutions.
He said the next phase would involve translating sustainability commitments into decisions affecting lending, investment and risk management across the banking industry.
WWF-Kenya will also support KBA and its member banks in developing Nature Transition Plans to help align financial activities with environmental sustainability goals.
“A financially resilient Kenya and a nature-positive nation are not competing ambitions. They are mutually reinforcing foundations of our future prosperity,” Kiplagat said.
The roadmap was unveiled at the Banking Industry Sustainable Finance Summit 2026, which brought together banking executives, investors, development partners, regulators and policymakers.
Discussions at the summit focused on climate-risk governance, sustainability disclosures and the role of financial institutions in supporting Kenya’s environmental and economic priorities.
