New banking sector risk reporting standards unveiled

L-R: WWF Head of conservation programmes Kenya,Raimond Molenje Chief Executive Officer Kenya Bankers Association,Juna Wala Director accounting & exchange services National Treasury & Tamara Cook CEO FSD Kenya during launch of the banking sector sustainability reporting template. [Wilberforce Okwiri,Standard] The banking sector has partnered with accountants to launch a new template that seeks to standardise sustainability and climate-related risk reporting across Kenya's banking sector The IFRS S1 and S2 template equips financial institutions to align with global benchmarks, enhance decision-making, and unlock opportunities in the transition to a low-carbon and socially inclusive economy Speaking during the launch in Nairobi yesterday, Kenya Bankers Association (KBA) Chief Executive Raimond Molenje lauded the International Sustainability Standards Board (ISSB) for its drive in developing a common reporting standard. He said the move would reduce the disjointed global sustainability reporting landscape. This comes barely a year after the introduction of the European Union's (EU) new sustainability directives, which came into effect in 2024 and mandate compliance with Environmental, Social, and Governance (ESG) standards across global supply chains. Though these regulations primarily target EU-based companies, their reach extends beyond Europe, influencing international markets and significantly impacting countries like Kenya, which are integral to global supply chains EU Sustainable Finance Disclosure Regulation (SFDR) aims to improve transparency, reduce greenwashing, and promote sustainable investments Kenya Flower Council Chief Executive Tulezi Clement, however, shared his concerns about the regulations. Starting April 26, 2025, Kenya's horticulture sector will face strict new regulations on managing the False Codling Moth, a highly destructive quarantine pest native to sub-Saharan Africa. The tiny insect poses a serious threat to crops like fruits, vegetables, and especially flowers, including roses. In roses, the moth damages quality, often leading to rejected shipments in key export markets, particularly the EU. "We are now moving into a space where compliance with international standards is not optional-it's a must," he said. With over 70 per cent of Kenya's horticultural exports going to the EU, he emphasised that meeting these rising standards is crucial to remain competitive. The EU and UK have listed the False Codling Moth as a regulated pest, and from this Saturday, new and stricter rules will take effect. At the same time, growers face another challenge of reducing the use of certain pesticides, even though farming in tropical conditions naturally demands strong pest management.

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