SBFN Member Since:
2015
Member Organisations
Kenya Bankers Association
Progress Against Pillars and Sub Pillars
This graphic can also be found within this country’s 2019 Country Progress Report.
Framework Documents
| Country | Policies/ Principles/ Guidelines | Year | Issuer |
|---|---|---|---|
| Kenya | 2021 | Central Bank of Kenya | |
| Kenya | Report on the State of Sustainable Finance in Kenya’s Banking Industry | 2021 | Kenya Bankers Association |
| Kenya | 2021 | National Treasury | |
| Kenya | 2019 | Kenya Bankers Association | |
| Kenya | 2019 | Nairobi Securities Exchange | |
| Kenya | 2019 | Nairobi Securities Exchange, Kenya Bankers Association and others. | |
| Kenya | 2018 | Kenya National Treasury | |
| Kenya | 2016 | Kenya National Treasury | |
| Kenya | 2015 | Kenya Bankers Association |
Strategic Development - Alignment with global E&S standards and best market practices
S1.1 – Does the framework make reference to international E&S targets (SDGs, Paris Agreement, Global Compact)?
Yes
(1) – page 18(2) page iv §2 and vi §2
Sustainable Finance Guiding Principles – page 18National Policy on Climate Finance (p. iv §2 and vi §2)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
S1.2 – Does the framework make reference to established international E&S risk management standards (IFC PSs, EPs)?
Yes
(1) – page 16 and 18
Sustainable Finance Guiding Principles – page 16 and 18
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
S1.3 – Does the framework make reference to established international sustainability reporting standards (GRI, SASB)?
Yes
(1) – page 17
Sustainable Finance Guiding Principles – page 17
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
S1.4 – Does the framework make reference to established international climate finance reporting standards (TCFD)?
No
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S1.5 – Does the framework ask to make E&S policies, practices and results externally verified (assurance, independent review)?
No
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Strategic Development - Multi-stakeholder collaboration
S2.1 – Does the framework involve interagency collaboration between financial supervisors/regulators, industry association, and FIs?
Yes
S2.2 – Does this collaboration also include other public agencies (e.g., environmental agencies, ministries)?
Yes
Kenya’s Green Bond Programme is endorsed by the National Treasury, Central Bank of Kenya and the Capital Market AuthorityCentral Bank governor launched the Principles.
Kenya’s Green Bond Programme is endorsed by the National Treasury, Central Bank of Kenya and the Capital Market AuthorityCentral Bank governor launched the Principles.
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S2.3 – Does this collaboration also include representatives of civil society (e.g., NGOs, associations, media)?
Yes
Collaboration with external stakeholders as part of the Green Bonds Principles drafting
Trained consultants from other industries.
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Strategic Development - Alignment to NDCs and with National or Regional Climate Change Targets
S3.1 – Is the framework aligned with national NDCs or other national and regional policies on climate?
Yes
(1) – page 9(3) – page 6
Sustainable Finance Guiding Principles – page 9Green Bond Guidelines Background Documents – page 6
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015) | Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019)
S3.2 – Has the SBN member identified the main climate risks (transition/physical) for their local financial sector?
No
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ESG Integration - Governance of E&S
Role of Governing Bodies on E & S
E1.1 – Does the country policy require one of the FI’s governing bodies (e.g., Board of Directors, Executive Committee, Supervisory Board, etc.) to approve an E&S strategy?
Yes
(1) : Principle 4 – page 30 (§2) and 32 (risk policies)
Sustainable Finance Guiding Principles : Principle 4 – page 30 (§2) and 32 (risk policies)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E1.2 – Does the policy require management to report on E&S strategy implementation to the governing bodies?
No
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E1.3 – Does the policy require FI operational bodies to report to the governing bodies (or specific Board committee) on implementation of the E&S strategy?
Yes
(1) : Principle 3 – page 32 (Risk Policies)
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Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
Organization
E1.4 – Does the framework ask FIs to define E&S roles and responsibilities?
Yes
(1) : Principle 3 – page 29 (§1)
Sustainable Finance Guiding Principles : Principle 3 – page 29 (§1)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E1.5 – Does the framework highlight the E&S roles of front office staff and second lines of defense (e.g. risk officers and/or compliance officers)?
Yes
(1) : HR policies – page 32 (§2)
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Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E1.6 – Does the framework ask FIs to define E&S competencies for each role?
No
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E&S Risk Management
E&S Policy
E2.1 – Does the framework ask FIs to formalize an E&S or ESG policy?
Yes
(1) : Principle 3 – page 28 (§1)
Sustainable Finance Guiding Principles : Principle 3 – page 28 (§1)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.2 – Does the framework encourage FIs to go beyond E&S requirements of local laws and regulations?
Yes
(1) : Best practice – page 16 (intro)
Sustainable Finance Guiding Principles : Best practice – page 16 (intro)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.3 – Does the framework ask FIs to set E&S objectives and targets?
No
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E2.4 -Does the framework ask FIs to publicly disclose their E&S policy and its governance?
No
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Risk Assessment
E2.5 – Does the framework require FIs to carry out appropriate E&S due diligence at transaction level?
Yes
(1) : Principle 3 – page 28 (§1)Difference between transaction / client level is not clear
Sustainable Finance Guiding Principles : Principle 3 – page 28 (§1)Difference between transaction / client level is not clear
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.6 – Does the framework require FIs to carry out appropriate E&S due diligence at client level?
Yes
(1) : Principle 3 (page 28, §2) and Principle 4 (page 30, §3)
Sustainable Finance Guiding Principles : Principle 3 (page 28, §2) and Principle 4 (page 30, §3)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.7 – Does the framework encourage FIs to categorize projects/clients according to their level of E&S risk?
Yes
(1) : Principle 3 – page 28 (§1)
Sustainable Finance Guiding Principles : Principle 3 – page 28 (§1)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.8 – For high-risk transactions, does the framework encourage site visits to be organized?
No
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E2.9 – In case of negative E&S impacts, does the framework invite FIs to engage with clients to implement mitigation measures?
Yes
(1) : Principle 3 – page 28 (§1)
Sustainable Finance Guiding Principles : Principle 3 – page 28 (§1)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E&S Covenants
E2.10 – Does the framework ask FIs to incorporate E&S covenants and investment conditions into legal agreements with clients?
No
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Project Supervision & Portfolio Review
E2.11 – Does the framework ask FIs to develop processes to manage E&S risks during supervision?
Yes
(1) : Principle 3 – page 28 (§1)
Sustainable Finance Guiding Principles : Principle 3 – page 28 (§1)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.12 – Does the framework encourage a periodic review of E&S risks at aggregate portfolio level?
No
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Training
E2.13 – Does the framework ask FIs to develop and maintain E&S capacity through regular training?
Yes
(1) : HR Policies – page 32 (§3)
Sustainable Finance Guiding Principles : HR Policies – page 32 (§3)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.14 – Does the framework highlight the training of (i) front office staff, (ii) second lines of defense (risk officers and/or compliance officers), and (iii) E&S experts?
Yes
(1) : HR Policies – page 32 (§3)
Sustainable Finance Guiding Principles : HR Policies – page 32 (§3)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
External Communication Mechanism
E2.15 – Does the policy require FIs to establish and maintain an inquiry/complaints/grievance mechanism in relation to E&S or ESG practices?
Yes
(1) : Principle 3 – page 29 (§2)
Sustainable Finance Guiding Principles : Principle 3 – page 29 (§2)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E & S Reporting
E2.16 – Does the policy require FIs to report regularly on E&S or ESG performance, including publicly, to investors or to regulators?
Yes
(1) : Principle 5 – page 31 (§2)
Sustainable Finance Guiding Principles : Principle 5 – page 31 (§2)
Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E2.17 – Does the policy make E&S or ESG reporting and disclosure more consistent across financial institutions through principles, guidelines, or templates?
No
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Kenya Sustainable Finance Principles and Guidelines (KBA, 2015)
E & S Integration - Enforcement
E3.1 – Is the implementation of the framework regularly verified or is information regularly collected from FIs?
No
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E3.2 – Is there any financial and/or non-financial incentive for establishing ESRM systems?
Yes
catalyst awards
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E3.3 – Are there sanctions/penalties/warnings in case of noncompliance with the framework?
No
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Climate and Green Finance - Products and Services
Defining sustainable assets and financial products
C1.1 – Does the framework provide definitions and examples of green assets?
Yes
(3) – page 12(2) – page 18 “SCOPE FOR CLIMATE FINANCE POLICY IN KENYA AND TARGET SECTORS”
Kenya green Bond Principles – page 12National Policy on Climate Finance – page 18 “SCOPE FOR CLIMATE FINANCE POLICY IN KENYA AND TARGET SECTORS”
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019)
C1.2 – Does the framework provide a comprehensive taxonomy of green assets?
Yes
(3) – page 8
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Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019)
C1.3 – Does the framework provide definitions, examples, or a taxonomy of social and/or sustainable assets?
Yes
(3) – page 7
Kenya green Bond Principles – page 7
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019)
C1.4 – Besides debt products (loans, bonds), does the framework provide definitions and examples of different types of sustainable finance products/services (e.g., saving accounts, means of payment, insurance, private equity, etc.)?
No
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Green Finance Product Guidelines
C1.5 – Does the framework provide guidelines for green loan/green credit or other green financial assets (excluding green bonds)?
No
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C1.6 – Does the framework provide guidelines for issuance of green bonds?
Yes
(3) – page 10(4) – page 8 (Green Guidelines and Standards)
Kenya green Bond Principles – page 10
NSE Listing Rules – page 8 (Green Guidelines and Standards)
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019) | Listing Rules (Nairobi Stock Exchange, 2018)
C1.7 – Does the framework refer to existing standards (e.g., ICMA’s Green Bond Principles or CBI’s Climate Bonds Standard)?
Yes
(3) – page 7(4) – page 8 (Green Guidelines and Standards)
Kenya green Bond Principles – page 7NSE Listing Rules – page 8 (Green Guidelines and Standards)
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019)
C1.8 – Does the framework recommend external party verification (e.g., second party opinion, assurance, certification)?
Yes
(3) – page 8 (2.) & page 11 (Part 5.)(4) – page 20 (Procedure for admission to listing for Green Bonds – 2.13.1)
Kenya green Bond Principles – page 8 (2.) & page 11 (Part 5.)NSE Listing Rules – page 20 (Procedure for admission to listing for Green Bonds – 2.13.1)
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019) | Listing Rules (Nairobi Stock Exchange, 2018)
Climate and Green Finance - Climate and Green Investment Reporting
Tracking and Disclosure of Climate & Green Finance
C2.1 – Does the framework ask FIs to report on climate/green finance flows (quantitatively or qualitatively)?
Yes
(3) – p11 (Part 4., §1)(4) – p52 Part VI, 1.b)
Kenya Green Bond Guidelines – p11 (Part 4., §1)NSE Listing Rules – p52 Part VI, 1.b)
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019) | Listing Rules (Nairobi Stock Exchange, 2018)
C2.2 – Does the framework ask FIs to report on climate risk exposure at portfolio level?
No
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C2.3 – Does the framework encourage FIs to report publicly on their green finance activities (i.e. not only to the regulator)?
No
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Climate and Green Finance - Measurement
Calculation of Environmental Benefits
C3.1 – Does the framework ask FIs to calculate the environmental benefits of their investments? (e.g., CO2 emission reduction, water saving, etc.)
Yes
(3) – page 11 (Part 4., §2)
Kenya green Bond Principles – page 11 (Part 4., §2)
Kenya Green Bond Guidelines Background Document (Kenya Green Bonds Programme, 2019)
C3.2 – Does the framework provide a taxonomy of potential environmental impacts?
No
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C3.3 – Does the framework provide methodologies, tools, and/or templates to measure and report these impacts?
No
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Climate Risk Exposure Assessment
C3.4 – Does the framework ask FIs to monitor climate risk exposure at portfolio level?
No
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C3.5 – Does the framework refer to specific climate risk exposure methodologies (e.g., climate scenario analysis, climate risk stress testing, calculation of carbon risk exposure, tracking of energy efficiency for real estate portfolio)?
No
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C3.6 – Does the framework encourage FIs to take mitigating steps on these risks?
No
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Climate and Green Finance - Incentives
Financial and Non-Financial Incentives
C4.1 – Does the framework provide any type of incentives for green financial products and services?
No
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C4.2 – More specifically, does the framework introduce financial incentives on green products and services?
No
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