Grace Ashiru
The joint effort of the European Investment Bank and the Central Bank of Kenya has inaugurated a groundbreaking climate finance best practice initiative. This initiative aims to tackle obstacles hindering green financing and foster climate resilience within Kenya’s financial systems.
In the Greening Financial Systems Programme framework, the European Investment Bank’s two-year venture is a pioneering move in East Africa. Focused on bolstering the involvement of Kenyan financial institutions in climate-related investments, this initiative, supported by the German government, sets a precedent for efficiently mobilizing climate finance. Furthermore, it emphasizes the integration of climate risk considerations into Kenya’s regulatory framework, contributing to a comprehensive approach towards sustainable financial practices.
EIB Vice President Thomas Östros underscores the imperative of overcoming barriers that impede green financing, highlighting the collaboration with the Central Bank of Kenya as a pivotal stride in amplifying the influence of climate finance and unlocking sustainable investments.
Governor Dr. Kamau Thugge affirms the Central Bank of Kenya’s dedication to fostering environmental responsibility within the financial sector. In October 2021, CBK issued guidelines on Climate-Related Risk Management to commercial banks, aiming to assist them in integrating climate-risk considerations across governance, strategy, risk management, and disclosure frameworks.
This initiative underscores the significance of factoring climate risks into financial decision-making processes.
