Kenyan Banks Invested Ksh. 2.1 Billion in Corporate Social Responsibility in 2018

By Rahab Mbiriti / June 21, 2019



invest-csr-kba-banks

Kenya’s banking industry invested 2.1 billion shillings in Corporate Social Responsibility (CSR) in 2018, according to the 2019 Kenya Banking Industry Shared Value Report released by the Kenya Bankers Association (KBA).

The report further indicates that approximately 6.7 billion shillings have been invested into CSR programs over the past three years.

Education ranks first as the top social investment area for banks, followed by health and environment.

Overall, banks have donated in excess of 9 billion shillings since 2015 in CSR activities, which has contributed greatly to Kenya’s realization of the Sustainable Development Goals (SDGs).

Direct support for various initiatives by banks was realized through marketing and sponsorships with the cumulative industry cause-related marketing standing at 1.7 billion shillings in 2018, up from 1 billion shillings in 2017.

The National Government has also benefited tremendously from banks’ profitability because figures indicate that tax revenue paid to the Government has increased exponentially over the years. In the 2017/2018 financial year, for instance, banks paid more than 73 billion shillings to the Kenya Revenue Authority (KRA).

Over the same period, commercial banks spent 39 billion shillings creating employment opportunities for the more than 30,000 employees in the sector.

Read Also: CMA and KBA Signs MOU to Enhance Research and Policy Initiatives in the Financial Sector

Speaking at the release of the industry’s social responsibility report, KBA Governing Council Representative and KCB Bank Kenya Managing Director Samuel Makome said, “CSR investments, banks have spent more than 3 billion shillings in cause-related sponsorships in areas such as sports. As you know, our athletes are the pride of Kenya and our global ambassadors of whom we are all very proud.”

As at September 2018, banks had lent a total of 2.53 trillion shillings to various sectors that drive the economy.

Nonetheless, the report highlighted a few hurdles faced by the industry, including the Banking (Amendment) Act, 2016, which introduced interest rate controls.

According to KBA CEO, Dr Habil Olaka, the interest rate ceiling set by Parliament has negatively impacted private sector access to credit, which has led to an estimated 1.4 percent decline in GDP.

Despite the interest rate caps, banks have been able to respond to credit needs through 2 innovative approaches such as leveraging on the Movable Property Registry on the e-citizen portal.

The Registry, which was introduced by the Movable Property Security Rights Acts, 2017, has aided banks to lend to individuals and SMEs with assets that are not land related.

As it now stands, 183,000 loans worth 3.65 trillion shillings have been registered, with further support from KBA coming in the form of the development of the Inuka Enterprise Program which was designed to de-risk MSMEs so that they can in turn access bank loans.

Read Also: KBA Conference Explores Credit Access Challenges, Highlights Financial Inclusion Opportunities

 



About Rahab Mbiriti

Rahab Mbiriti is an Experienced Research Specialist working for Sokodirectory with a passion for collecting data, breaking down data and analyzing it for easy consumption. Rahab also has a passion for writing Business and Economic oriented articles.

View other posts by Rahab Mbiriti


More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2019
  • January 2019 (256)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (252)
  • July 2019 (340)
  • August 2019 (226)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (187)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (249)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (170)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950