SOCIAL RESPONSIBILITY

Banking industry creates social value in the society

In Summary

• Banks have donated Sh9 million since 2015.

• This contributes greatly to Kenya’s realization of the Sustainable Development Goals.

KBA chief executive Habil Olaka /FILE
KBA chief executive Habil Olaka /FILE

Banks in Kenya have invested Sh2.1billion in Corporate Social Responsibility according to the 2019 Kenya Banking Industry Shared Value Report with education ranking as the top social investment area.

Banks have donated Sh9million since 2015 contributing greatly to Kenya’s realization of the Sustainable Development Goals (SDGs).

Speaking at the release of the report, KBA governing council representative Samuel Makome, reiterated the role the banking industry has played in creating shared value for the society.

“Banks are heavily investing in engagements and activities that have a positive impact on the society, environment, and economy,” he said.

The banking industry in the 2017/2018 financial year contributed to the country's overall economic growth as it paid more than Sh73billion in taxes to the National Government.

In the same period, the KBA report found banks have invested Sh39 billion in employment creation through jobs and contracts which generated further revenue.

KBA CEO, Habil Olaka noted that as much as banks are making a greater contribution to the economy and society, there are hurdles faced in the industry, including the introduction of the interest rate controls.

“The interest rate cap set by Parliament has negatively impacted private sector access to credit, which has led to an estimated 1.4 per cent decline in GDP,” Olaka said.

To navigate the challenging operating environment, the banking industry has championed innovative programs and have adopted new methods of lending such as leveraging on the Movable Property Registry on ecitizen.go.ke.

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.