Business & Money
StanChart Kenya: Sh1.3B Raised for Green Project Financing
The bank’s green financing portfolio covers solar energy projects, energy-efficient infrastructure, and sustainable agriculture. A key initiative included funding solar energy systems for over 1,000 rural households in Kenya, providing affordable and reliable energy access.
:StanChart Kenya’s Sh1.3B earnings from green project financing mark a 62.5% rise. This reflects its commitment to sustainability and aligns with Kenya’s Vision 2030.
By Charles Wachira
In an era where climate change poses significant challenges, Standard Chartered Bank Kenya (StanChart) has emerged as a frontrunner in sustainable financing, reporting earnings of Sh1.3 billion (approximately $9.7 million) from its green project financing initiatives. This milestone reflects the bank’s commitment to supporting environmentally friendly projects that align with global sustainability goals.
A Focus on Sustainability
In 2023, StanChart Kenya launched several initiatives aimed at promoting renewable energy, sustainable agriculture, and energy efficiency. These projects are not only pivotal in addressing climate change but also provide significant economic benefits. According to the bank’s Chief Executive Officer, Kariuki Ngari, “Our commitment to green financing is part of a broader strategy to support sustainable development in Kenya. By investing in green projects, we are not only addressing climate change but also creating economic opportunities for local communities.”
The bank’s green financing portfolio includes funding for solar energy projects, energy-efficient infrastructure, and sustainable agricultural practices. For instance, one notable project involved financing the installation of solar energy systems for over 1,000 households in rural Kenya. This initiative not only reduces reliance on fossil fuels but also provides affordable and reliable energy access to underserved communities.
Financial Performance Metrics
The Sh1.3 billion earnings from green projects represent a significant increase from the previous year, where the bank generated Sh800 million from similar initiatives. This growth signifies an increase of 62.5% year-on-year, highlighting the rising demand for sustainable financing options in Kenya.
Key performance indicators reveal that StanChart’s green financing initiatives contributed approximately 15% to the bank’s overall revenue in 2023, up from 10% the previous year. The impressive growth in this sector is attributed to the bank’s proactive approach in engaging with clients seeking sustainable investment opportunities.
The Economic Impact
StanChart’s green financing efforts are aligned with Kenya’s Vision 2030, which aims to transform the country into a sustainable and globally competitive economy. By investing in green projects, StanChart is playing a crucial role in supporting the government’s goal of increasing the share of renewable energy in the national energy mix to 100% by 2030.
A recent report by the Kenya Renewable Energy Association (KEREA) states that renewable energy projects in the country are expected to create over 40,000 jobs and generate $5 billion in investments by 2025. StanChart’s involvement in this sector not only enhances its brand reputation but also positions it as a leader in the sustainable financing landscape.
Innovation in Green Financing
In addition to traditional financing, StanChart is leveraging innovative financial instruments to fund green projects. The bank recently introduced green bonds, which allow investors to finance environmentally sustainable projects. These bonds have attracted significant interest, raising Sh500 million in just three months after their launch.
Karanja emphasized the importance of innovation in achieving sustainability goals: “We are committed to exploring new avenues for financing green projects. The introduction of green bonds is just one way we are diversifying our financing solutions to meet the growing demand for sustainable investments.”
Future Outlook
Looking ahead, StanChart plans to increase its green financing portfolio by 30% in the next fiscal year, aiming to generate Sh1.7 billion from sustainable projects. The bank is also exploring partnerships with international organizations to expand its reach and enhance its capacity to finance larger-scale projects.
In conclusion, Standard Chartered Bank Kenya’s achievement of earning Sh1.3 billion from green projects financing underscores its commitment to sustainability and innovation. As the bank continues to lead in sustainable financing, it not only enhances its financial performance but also plays a vital role in driving Kenya towards a greener and more sustainable future. As Kariuki aptly stated, “Our success in green financing is not just a financial milestone; it is a commitment to a sustainable future for Kenya and its people.”
Keywords:Sustainable financing growth:Green project financing in Kenya:StanChart Kenya renewable energy investments:Green bonds and innovative financial solutions:Vision 2030 renewable energy goals
: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.
KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September
This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.
Profit Growth Driven by Core Business Performance
The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.
Non-Performing Loans a Key Concern
Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.
KCB Stock Outshines Peers on NSE
KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).
Plans to Sell National Bank of Kenya
Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.
CEO Paul Russo Optimistic About Year-End Performance
“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed
confidence in closing the year on a high note, leveraging improving economic conditions
across the region.
Key Figures at a Glance
● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date
KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.
Business & Money
Top 10 Kenyan banks by total assets as of 2023, based on data from the Central Bank of Kenya:
KCB Bank Kenya Limited
Total Assets: KSh 1.425 trillion
Market Share: 17.4%
Equity Bank Kenya Limited
Total Assets: KSh 1.004 trillion
Market Share: 12.2%
NCBA Bank Kenya PLC
Total Assets: KSh 661.7 billion
Market Share: 9.2%
Co-operative Bank of Kenya
Total Assets: KSh 624.3 billion
Market Share: 8.8%
Absa Bank Kenya PLC
Total Assets: KSh 520.3 billion
Market Share: 6.6%
Standard Chartered Bank Kenya
Total Assets: KSh 429.3 billion
Market Share: 5.9%
Stanbic Bank Kenya
Total Assets: KSh 449.6 billion
Market Share: 5.8%
I&M Bank Limited
Total Assets: KSh 405.6 billion
Market Share: 5.4%
Diamond Trust Bank Kenya
Total Assets: KSh 399.6 billion
Market Share: 5.3%
Bank of Baroda (Kenya) Limited
Total Assets: KSh 201.9 billion
Market Share: 2.8%
These rankings illustrate the dominance of large Tier 1 banks, which collectively control over
76% of the market share. Strategic expansions, increased deposit mobilisation, and robust
lending practices underpin the sector’s strong performance
: Vasundhara Oswal, daughter of industrialist Pankaj Oswal, faces serious
charges in Uganda. The Oswals call for UN intervention amid claims of corporate
jealousy.
Vasundhara Oswal, the 26-year-old daughter of prominent Swiss-Indian industrialist
Pankaj Oswal, has found herself at the centre of a legal storm in Uganda.
Her father, a well-established business figure, is known for his diverse investments,
most notably a $150 million ethanol plant in Uganda.
This plant, the largest of its kind in East Africa, is a key part of Oswal’s broader strategy
to invest in industrial and eco-friendly solutions in the region. The facility produces extra-neutral alcohol (ENA), which is used in the beverage, cosmetics, and pharmaceutical industries.
It is recognised for its modern technology and sustainable practices, such as zero liquid
discharge, emphasising the Oswal family’s commitment to both industrial growth and
environmental responsibility.
In addition to the ethanol plant, Pankaj Oswal has made strategic investments across
various industries, including petrochemicals, agriculture, and real estate.
His ventures reflect a global reach, extending to Australia and India, where he has
been involved in industries ranging from agriculture to renewable energy.
His diversified business approach and commitment to sustainability have made him a prominent figure in international business. However, in October 2024, the family’s legacy was overshadowed by the legal troubles surrounding Vasundhara Oswal.
She was detained on October 1, 2024, after being accused of involvement in the
alleged murder of Mukesh Menaria, a former employee who had worked with the
Oswals since 2017.
Menaria had accused the family of harassment but later testified under oath that they
had not harmed him Despite this, charges of kidnapping and murder were brought against Vasundhara.
Her family has strongly denied these allegations, claiming that the charges are
politically motivated and part of a larger conspiracy orchestrated by their business rivals
in collaboration with corrupt officials in Uganda.
The Oswals have appealed to the United Nations, seeking intervention and asserting
that the legal proceedings against Vasundhara are unlawful. Vasundhara has actively managed the family business throughout her career, especially the ethanol plant, and led the company’s sustainable initiatives.
Beyond her business involvement, she has also been an advocate for community
welfare and mental health, further cementing the Oswal family’s reputation for corporate
social responsibility.
The unfolding legal drama has raised important questions about the intersection of
business, politics, and the legal systems in Uganda.
While the Oswal family’s ventures reflect a blend of industrial innovation and social
responsibility, the legal challenges Vasundhara faces have cast a shadow over their
business empire, highlighting the complex dynamics at play in East Africa.
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