Absa Bank Kenya launches country’s first 110 per cent Eco-Home Loan to finance energy-efficient and climate-resilient housing.[iStock]
Kenya’s mortgage market is transitioning into green finance, offering new options for buyers to finance energy-saving and climate-resilient homes.
The latest example is a 110 per cent loan that gives homebuyers more than the purchase price to cover eco upgrades.
Absa Bank Kenya unveiled the product on Friday alongside its 2024 Sustainability and Climate Report.
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Chairman Charles Muchene said the loan aligns with emerging global standards for sustainability reporting.
“We see this as a necessary shift to build investor confidence and comparability,” said Muchene.
The lender issued Sh 47 billion in sustainable finance last year, with Sh 25.1 billion channelled through its Timiza digital platform to small businesses, women-led enterprises, youth-led enterprises and underserved communities.
Chief Executive Abdi Mohamed said sustainability is now part of credit decisions in the banking sector.
“Financing solutions like the Eco-Home Loan actively support Kenya’s transition to a low-carbon, climate-resilient economy,” noted Mohamed.
Absa’s report also showed a 38 per cent cut in emissions from purchased electricity since 2019, planting of more than 1.5 million trees and a 94 per cent waste recycling rate.
Governance changes included the adoption of a greenwashing policy and Board oversight of climate risk in line with the Central Bank of Kenya guidelines.
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Absa Bank Kenya launches country’s first 110 per cent Eco-Home Loan to finance energy-efficient and climate-resilient housing.
[iStock]
Kenya’s mortgage market is transitioning into green finance, offering new options for buyers to finance energy-saving and climate-resilient homes.
The latest example is a 110 per cent loan that gives
homebuyers more than the purchase price to cover eco upgrades
.
Absa Bank Kenya unveiled the product on Friday alongside its 2024 Sustainability and Climate Report.
Follow The Standard
channel
on WhatsApp
Chairman Charles Muchene said the loan aligns with emerging global standards for sustainability reporting.
“We see this as a necessary shift to build investor confidence and comparability,” said Muchene.
The lender issued Sh 47 billion in sustainable finance last year, with Sh 25.1 billion channelled through its Timiza digital platform to small businesses, women-led enterprises, youth-led enterprises and underserved communities.
Chief Executive Abdi Mohamed said sustainability is now part of credit decisions in the banking sector.
“Financing solutions like the Eco-Home Loan actively support Kenya’s transition to a low-carbon, climate-resilient economy,” noted Mohamed.
Absa’s report also showed a 38 per cent cut in emissions from purchased electricity since 2019, planting of more than 1.5 million trees and a 94 per cent waste recycling rate.
Governance changes included the adoption of a greenwashing policy and Board oversight of climate risk in line with the Central Bank of Kenya guidelines.
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channel
on WhatsApp
By David Njaaga