Africa is in a race against time to raise its sustainability reporting standards to align with international Environmental, Social, and Governance (ESG) frameworks.
Over the past two years, jurisdictions representing more than half of global GDP have adopted or aligned with the International Sustainability Standards Board (ISSB) framework.
As of June 2025, at least 36 jurisdictions had embraced International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards.
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Kenya has a phased roadmap for adoption, starting with voluntary application in 2024 and mandatory application for public interest entities in 2027, large private companies in 2028, and SMEs in 2029.
Kenya’s phased adoption allows businesses time to adjust while maintaining competitiveness in attracting investment.
Listed companies and state corporations are expected to integrate sustainability metrics into financial disclosures, given that IFRS S1 and S2 are already in effect.
New global assurance standards are being introduced to reinforce trust and credibility. The International Auditing and Assurance Standards Board (IAASB) has issued ISSA 5000, the first comprehensive sustainability assurance standard, effective December 2026, while the International Ethics Standards Board for Accountants (IESBA) has introduced ethics guidelines for sustainability professionals.
Taking cognisance of this, Afristar, the Standard Gauge Railway (SGR) operator, has put in place governance frameworks that ensure ethical compliance, transparency, and accountability in operations under the oversight of the Kenya Railways Corporation (KRC), sector regulator.
Operationally, the Standard Gauge Railway (SGR) moves 17,000 tonnes of freight daily, cutting greenhouse gas emissions.
Compared to road transport, Kenya’s SGR offers greater safety, larger capacity, higher speed, lower cost, and reduced energy consumption, demonstrating clear environmental benefits.
Freight transport via SGR from Mombasa to Nairobi takes only 10 hours—more than 50 per cent faster than road transport.
According to the data published by the World Bank, shifting one million tonnes of freight from road to rail can reduce carbon dioxide equivalent (CO₂e) emissions by over 20,200 tonnes.
Since its operation, the SGR has contributed to cumulative emissions reductions exceeding 800,000 tonnes of CO₂.
About 6,300 passengers and 1,348 Twenty-foot Equivalent Units (TEUs) are ferried daily, traffic that would otherwise require 105 buses and 150 trucks, reducing massive fuel consumption, congestion, and greenhouse gas emissions.
Afristar recycles locomotive engine oil and reuses scrap metal from wheel maintenance, ensuring waste is managed responsibly.
Afristar also incorporates feedback from stakeholders, including passengers, regulators, and employees, into its ESG planning and reporting processes.
Passenger surveys, regulator reviews, employee input, and feedback on its digital media platforms all shape the company’s ESG strategy.
Community feedback gathered during sensitisation exercises is analysed and integrated into the operations. Frequent stakeholder meetings with Kenya Railways ensure collaborative solutions.
This approach ensures its ESG plans reflect the needs of customers, employees, and partners alike.
To ensure effectiveness, a dedicated ESG management committee and working office oversee daily implementation, training, inspections, and performance assessments.
The results are consolidated into the operator’s 2024-2025 ESG Sustainability Report, which is shared internally with staff and externally with regulators and stakeholders, reinforcing transparency, accountability, and the company’s commitment to sustainable railway operations.
Afristar has also directed its investment toward green technologies or process improvements in locomotive operations and maintenance practices.
The SGR operator has invested in fuel-efficient locomotives, digital dispatch systems that maximise the Centralised Traffic Control system to track and monitor trains along the line in real time, and upgraded maintenance practices to cut emissions.
Low-carbon management principles guide locomotive operations, wastewater control, and oil contamination prevention. By leveraging Big Data, the company reduces resource consumption and improves environmental management at all sites.
These initiatives bring it closer to its vision of greener rail transport.
Africa is on the verge of a major crossroad in terms of its sustainability, and the time to act is now. African businesses cannot be left behind.
Kenya’s phased roadmap could also offer businesses a unique opportunity to think ahead, create effective ESG models, and become an effective player in the global market.
Afristar’s application of ESG principles in its functioning is already producing results, a clear indication that sustainable practices are not only a regulatory obligation but also the way to efficiency, competitiveness, and winning the trust of investors.
To be relevant in a rapidly evolving global economy, Kenyan businesses need to adopt sustainability reporting immediately, incorporate ESG in their businesses, and invest in green innovations.
– The author is a communications executive at Afristar
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By Nelson Asienwa