The European Investment Bank and the Central Bank of Kenya launched a climate finance best practice initiative.
Addressing barriers to green financing and promoting climate resilience in Kenya’s financial systems.
The European Investment Bank’s two-year initiative, a first in East Africa under the Greening Financial Systems Programme, enhances Kenyan financial institutions’ participation in climate-related investments. Supported by the German government, it serves as a model for mobilizing climate finance and integrating climate risk into Kenya’s regulatory framework.
Edward-Claessen-Head-of-the-EIB-Regional-Hub-in-Nairobi
EIB Vice President Thomas Östros emphasizes the need to overcome barriers hindering green financing, citing the partnership with the Central Bank of Kenya as a step toward increasing the impact of climate finance and unlocking sustainable investments.
Dr. Kamau Thugge, Governor of the Central Bank of Kenya, stated, “The Central Bank of Kenya is committed to greening the financial sector. Towards this end, CBK issued Guidance on Climate-Related Risk Management in October 2021, to commercial banks. The Guidance was intended to facilitate banks in incorporating climate-risk-related considerations in their governance, strategy, risk management, and disclosure frameworks.”
The initiative emphasizes the rising significance of climate risks in financial decisions.