Summary
- Absa Bank Kenya has launched the Absa Kenya Foundation, committing 1.5% of its annual earnings and KES 500 million for community-focused initiatives.
- The Foundation will focus on empowering MSMEs, youth education, climate resilience, and health through strategic partnerships.
- Government leaders stressed the importance of private sector collaboration in addressing societal and environmental challenges.
Absa Bank Kenya has officially launched the Absa Kenya Foundation (AKF) as a social arm that will accelerate its positive impact and sustainability commitments within the community.
The Foundation, which will be sponsored by the Bank and its strategic partners, will focus on four key programmatic pillars: entrepreneurship, education and skills, natural resource management, and health and humanitarian relief.
Absa Bank Kenya will contribute 1.5% of its annual earnings to the new Foundation, starting off with KES500 million as seed funding towards transformative projects that will be implemented through strategic partnerships to address major societal and environmental issues.
Speaking at the launch, Absa Bank Kenya PLC Managing Director, Abdi Mohamed, emphasized the bank’s pivotal role in the economy, particularly as a systemic institution driving sustainable shared value across the society.
“The establishment of this Foundation is yet another step forward in our journey to lead and innovate within the financial sector, acting as a catalyst for positive, lasting change. This presents us with an important opportunity to build upon our past experiences to strengthen our ability to create lasting shared value and scalable impact for our communities in a sustainable manner,” Mr. Mohamed stated.
While officiating over the launch event, the Prime Cabinet Secretary, H.E, Musalia Mudavadi, underscored the urgency for heightened collaboration between the government and the private sector in addressing some critical societal challenges.
“The Foundation’s launch is particularly timely, given the considerable pressure on Government resources resulting from limited tax and external resources available to support competing challenges such as poverty alleviation and growth challenges as well as supporting priority programme in education, health, infrastructure, and climate-change induced vulnerabilities,” Hon. Mudavadi said.
Speaking at the event, Aden Duale, the Cabinet Secretary for the Environment, Climate Change and Forestry said stronger collaboration will be required with the private sector to accelerate environmental and climate action. “It is only through such strategic collaboration that we can attain the ambitious goal of growing 15 billion trees in the next few years,” Hon. Duale said.
“Banks and financial institutions, such as Absa Kenya, have a unique role to play in promoting these sectors. You can facilitate access to capital, provide financial products tailored to forest-based enterprises, and support green businesses,’” he added.
The Foundation’s Entrepreneurship pillar aims to empower 50,000 MSMEs over the next five years, with an emphasis on inclusivity: 60% women, 30% men, 10% youth, and 5% dedicated to Persons Living with Disabilities (PLWDs). Additionally, 10% of efforts will be directed on generating growth in the agriculture sector.
The Education and Skills pillar, on the other hand, aims to reach 1 million youth through the Ready-to-Work initiative, support 50,000 youth through the Absa Fellowship Program, and award 500 Science, Technology, Engineering, and Mathematics (STEM) scholarships, with a focus on providing students with future-ready skills.
The Foundation plans to expand climate financing contributions under the Natural Resource Management pillar to address climate change concerns through programs such as climate-smart agriculture, renewable energy, tree planting, and tree growing. The Foundation will advocate for low-carbon, climate-resilient development in collaboration with youth, SMEs, and other stakeholders, with the commitment to plant 10 million trees acting as a cornerstone.
Under the Health and Humanitarian Relief pillar, the Foundation will work with development partners and healthcare professionals to address major health issues and promote preventative care. This pillar will also prioritize responding to humanitarian crises such as floods and famine.
Mr. Mohamed said the Foundation’s success will be underscored by different critical partnerships that will support the co-creation, co-funding and co-implementing impactful programme in the community.
“We recognize that this is a journey we cannot undertake alone. We require robust partnerships, collaborations, and cooperation with like-minded stakeholders, which will form a solid foundation for the success of this endeavour,” he added.
Also Read: Absa Bank Kenya Launches ‘Change Your Story’ Campaign to Encourage Digital Banking and Card Payments