DEG supports sustainability guidelines for Kenyan banks

In early December, the Kenyan banking industry agreed to implement Sustainable Finance Guiding Principles, developed by the Kenya Bankers Association (KBA). DEG has been accompanying the Sustainable Finance Initiative since its launch in mid-2013 and has supported the process of defining the content of the principles.

Among other things, the agreed principles require the financial institutions to mitigate social and environmental risks associated with their financing activities or to avoid these negative impacts entirely. Moreover, the principles are to promote the financial inclusion of people with no access to financial services and the financing of environmentally friendly investments in order to allow the banking sector to fulfil its role in supporting a sustainable development in Kenya.

Also the participating banks benefit from the Sustainable Banking Principles. They can use the guidelines to, for example, enhance their risk management or improve customer relationships.

In addition, KBA, in cooperation with DEG, has developed and recently launched an e-Learning platform that supports banks in implementation of the principles.

DEG promotes the adoption of sustainability guidelines in the financial sector of other countries as well. As recently as November, 18 Sri Lankan financial institutions defined common sustainability guidelines. Back in 2012, DEG supported a similar initiative in Nigeria