The Central Bank of Kenya (CBK), as part of its broader efforts to green the banking sector, has announced the Kenya Green Finance Taxonomy (KGFT) and the Climate Risk Disclosure Framework. These tools were developed with support from the European Investment Bank under the Greening Financial Systems Technical Assistance Programme.

The KGFT is designed to help financial institutions evaluate and classify their economic activities based on alignment with climate objectives, drawing from Kenya’s Nationally Determined Contributions (NDCs) and other national climate policies. It currently focuses on climate mitigation and adaptation, with plans to expand to other environmental objectives in future updates.

The Climate Risk Disclosure Framework aims to guide banks in consistently reporting climate-related risks and opportunities, improving transparency across the financial sector. It enables investors to assess the climate resilience of potential investments and encourages sustainable business practices. The framework aligns with international standards such as the IFRS S2 and the Basel Committee’s principles, reinforcing Kenya’s commitment to a low-carbon, climate-resilient economy.

👉 Access and download the full documents here.