Kenya’s involvement in addressing environmental, social and governance (ESG) issues began in the 1990s with the Code of Corporate Governance. In 2016 the country launched the Climate Change Act to mobilize both public and private sector actors to transition to a low-carbon economy. Kenya launched its Green Economy Strategy and Implementation Plan (GESIP) in 2017.
In 2015 the Kenya Bankers Association (comprising 47 active bank members) launched the Sustainable Finance Initiative (SFI) Guiding Principles (the Principles), which aim to raise awareness on sustainable practices and ESG risks within the banking sector, in particular through a dedicated e-learning training platform intended to reach all Kenyan bank employees. The application of the Principles is not mandatory. The Principles could be strengthened if practical guidance and shared definitions are provided. Some of these aspects are addressed via the e-learning platform, which is now publicly available to all banks.
According to the SBN Country Progress Report, Kenya is striving to promote green financial flows, especially through the Climate Change Act (accompanied by a Climate Change Fund) and Kenya’s Green Bonds program. Kenya has not yet launched green finance guidelines covering the operations of the entire financial market. A draft Green Bond Guidelines background document have been developed.