Stanbic exceeded its sustainable finance target by 48%, deploying Sh133bn ($1.03bn) across Kenya and South Sudan in 2025.
Sustainable Finance Moves to the Centre of African Banking
For decades, African banks were primarily judged by loan growth, profitability and balance-sheet strength. Today, however, a new measure of performance is emerging: the ability to finance economic growth while supporting climate resilience, financial inclusion and sustainable development.
That shift is becoming increasingly visible at Stanbic Holdings Plc, which surpassed its sustainable trade finance target in 2025 by deploying Sh133 billion ($1.03 billion) across Kenya and South Sudan.
The figure exceeded the lender’s original target of Sh90 billion ($696 million) by nearly 48 per cent, underscoring the growing importance of sustainable finance as a strategic pillar within East Africa’s banking sector.
Rather than treating sustainability as a compliance requirement, Stanbic is positioning it as a core business model capable of generating both financial returns and measurable development impact.
Why the Numbers Matter Beyond Banking
The significance of the Sh133 billion deployment extends beyond the banking sector.
Across Africa, governments face mounting pressure to finance energy transition projects, climate adaptation programmes, affordable housing and food security initiatives while dealing with fiscal constraints and rising debt burdens.
Banks are increasingly being called upon to bridge this financing gap.
Stanbic’s performance suggests sustainable finance is becoming one of the most effective channels through which private capital can support long-term economic development.
The trend mirrors a broader global movement in which investors are directing capital toward institutions that demonstrate measurable environmental and social outcomes alongside profitability.
Oigara’s Strategic Shift Towards Resilience
Stanbic Holdings Chief Executive Officer Joshua Oigara says the bank deliberately repositioned its lending portfolio to support sectors capable of strengthening long-term economic resilience.
“We made a deliberate strategic shift, re-orienting our portfolio toward sectors and segments that foster long-term national resilience, including green financing.”
He added:
“We have embedded sustainability into the fabric of our daily decision-making, ensuring that performance is measured against clear targets and aligned to our strategic direction.”
Those remarks reflect a growing shift across African financial institutions where sustainability is increasingly viewed as a source of competitive advantage rather than a reporting obligation.
Green Buildings and Solar Projects Attract Capital
A review of the lender’s sustainability performance reveals where capital is flowing.
Stanbic advanced Sh4.5 billion ($34.8 million) in green building loans and an additional Sh273 million ($2.1 million) toward solar energy projects.
These investments support cleaner energy systems and environmentally efficient infrastructure while helping businesses lower operating costs and reduce carbon emissions.
The investments also align with global sustainability goals promoted by organizations such as United Nations and the broader climate-finance agenda.
SMEs Remain the Backbone of the Strategy
Small and medium-sized enterprises continue to occupy a central position in Stanbic’s sustainability framework.
Through the Stanbic Foundation, the lender provided Sh105.73 million ($817,000) in grants and catalytic funding aimed at helping micro, small and medium-sized enterprises expand operations and improve resilience.
Across Africa, SMEs account for the majority of business activity and employment creation. However, access to affordable financing remains one of the biggest barriers to growth.
By directing capital toward this segment, Stanbic is strengthening a critical engine of economic development.
Housing Finance Targets Kenya’s Supply Gap
The lender also expanded support for affordable housing, providing Sh1.8 billion ($13.9 million) in home financing during the year.
The move comes as Kenya continues to face a significant housing shortage driven by rapid urbanisation and population growth.
Affordable housing has become one of the country’s major economic priorities because of its links to construction activity, employment creation and improved living standards.
As a result, financing institutions are increasingly treating housing as both a commercial opportunity and a development priority.
Climate-Smart Agriculture Gains Momentum
Agriculture remained another major focus area.
Stanbic advanced Sh2.5 billion ($19.3 million) in climate-smart agriculture financing, increasing agriculture’s share of the lender’s total loan book to 9.9 per cent.
The funding supported farmers adopting sustainable farming practices designed to improve productivity while protecting natural resources.
Given agriculture’s contribution to employment, exports and food security across East Africa, climate-smart financing is increasingly becoming a strategic investment category for lenders.
Risk Screening Becomes a Competitive Advantage
An important but often overlooked aspect of sustainable finance is risk management.
According to Stanbic Chief Risk Officer Edwin Mucai, environmental and social screening now plays a central role in protecting the quality of the bank’s loan portfolio.
“Our environmental and social risk management framework, which mandates screening for all loans above $1 million, strengthens the quality and resilience of our loan portfolio.”
He added:
“It protects the bank and its clients from financing projects with material environmental and social vulnerabilities, helping us build a more resilient book that can withstand economic shocks.”
This approach reflects a growing trend among leading international lenders, where sustainability assessments are increasingly integrated into core credit-risk processes.
Gender Inclusion Expands Economic Participation
The sustainability report also highlights progress in advancing gender inclusion.
Procurement spending directed to women-owned businesses rose to 15.53 per cent, while women accounted for 43 per cent of board representation.
In addition, Stanbic signed the UN Women’s Empowerment Principles, reinforcing its commitment to advancing gender equality throughout its operations and supply chain.
Meanwhile, the bank’s D.A.D.A platform has disbursed Sh49.5 billion ($383 million) to women entrepreneurs since inception and onboarded more than 112,640 women.
These figures illustrate how financial inclusion is increasingly becoming a measurable business outcome rather than a corporate responsibility initiative.
Environmental Restoration Supports Long-Term Sustainability
Beyond financing, Stanbic intensified conservation efforts by planting more than 204,000 trees and restoring over 107 hectares of degraded land.
The restoration programme includes indigenous forests around Mount Kenya and mangrove ecosystems within the Sabaki Estuary.
Such projects are becoming increasingly important as financial institutions seek to align business growth with environmental stewardship.
Intelligence Takeaway
Stanbic’s deployment of Sh133 billion ($1.03 billion) in sustainable finance signals a broader shift underway across African banking.
The lender’s performance suggests that future banking leadership may increasingly be defined not by the size of a balance sheet alone, but by the ability to finance climate resilience, inclusive growth and long-term economic transformation.
For East Africa, the message is becoming clearer: sustainable finance is evolving from a niche activity into a mainstream driver of investment, competitiveness and economic development.
