NAIROBI,Kenya— Absa Bank Kenya has unveiled the country’s first Eco-Home Loan, offering up to 110% financing for building or upgrading homes with energy-efficient and climate-resilient features.
The product, launched alongside the lender’s 2024 Sustainability and Climate Report, is designed to help homeowners incorporate green solutions such as solar panels, rainwater harvesting systems, energy-saving appliances, and sustainable construction materials.
The aim is to align housing choices with Kenya’s low-carbon development goals.
“This is one example of how we are taking sustainability forward,” said Absa Kenya CEO Abdi Mohamed.
“Over the past three years, we have embedded it as a core lens through which we evaluate risk, opportunity, and long-term impact. Financing solutions like the Eco-Home Loan actively support Kenya’s transition to a climate-resilient economy.”
The financing structure covering more than the standard 100% is intended to bridge the higher upfront costs often associated with eco-friendly construction.
Customers can use the extra funds to install renewable energy systems, improve water efficiency, and adopt materials that reduce a home’s carbon footprint over its lifetime.
The 2024 report, themed Rooted in purpose, growing with impact, also detailed Absa’s broader sustainability efforts, including Sh47 billion in sustainable finance disbursements.
Of this, Sh25.1 billion went through Timiza, the bank’s mobile lending platform, targeting micro, small, and medium enterprises as well as women- and youth-led businesses.
Absa reported a 38% cut in Scope 2 emissions from its operations since 2019 and a 94% waste recovery rate in 2024, avoiding nearly seven tonnes of CO₂-equivalent emissions. More than 1.5 million trees have been planted as part of ongoing reforestation work.
Charles Muchene, the bank’s chairman, said the report reflects progress toward “sustainability maturity” and the adoption of new international standards for climate disclosures.
By pairing green financing with operational climate action, Absa aims to play a leading role in shaping Kenya’s sustainable housing market an area that has so far been limited by high costs and low consumer awareness.
