Bank powers climate agenda

Equity Bank has announced that it has cumulatively disbursed Sh26 billion to finance climate projects, signaling a growing trend among local lenders to screen and finance projects with minimal environmental impact.

The bank, in its sustainability report launched yesterday, also said it has enhanced its social protection programme, which now includes increased focus on financial inclusion programmes for refugees and host communities, mostly in Kakuma and Daadab.

The Group said that as of December last year, it had cumulatively disbursed Sh26 billion in climate-aligned financing. This, Equity said, was enabling businesses and communities to transition toward more sustainable practices. 

“By the end of 2024, the bank had disbursed over Sh26 billion in climate finance, focusing on climate-smart agriculture, renewable energy, clean cooking technologies, and nature restoration,” said the bank in its sustainability report. 

“In response to growing demand for climate-aligned financing, the bank has operationalised a solar and water solutions lending framework to support clients in adopting renewable energy and water-efficient technologies. The bank has further enhanced its technologies to enable climate finance system flagging which allows the bank to monitor and report green financing transactions in its books.”

It added that a total of  44,700 clean energy equipment were distributed, expanding access to affordable, low-emission energy among households and businesses.

The bank said the clean energy products were valued at over Sh3.71 billion ($28.5 million). Over 466,975 households had benefitted, thereby impacting over 1.68 million individuals. 

The different initiatives of distributing clean cookstoves and solar home systems had the impact of saving over Sh6.76 billion ($52 million) worth of charcoal and kerosene.

In the sustainability report, the bank said it extended its initiatives to support refugees and other marginalised communities. In its bid to deepen financial inclusion among refugees, Equity Bank is plugging into a new integration plan by the Kenyan Government and UNHCR dubbed Shirika Plan that aims to promote socio-inclusion of refugees within the host communities. “Through cash transfers, affordable credit, and financial literacy programs, the Group facilitated reach to over 447,355 vulnerable households,” said the report.