Members of the IFC- supported Sustainable Banking Network (SBN), Kenya Banking Association (KBA) and Mongolia Bankers Association (MBA) have signed a Memorandum of Understanding (MoU) to enhance environmental and social risk management as well as sustainable financing practices in the banking sectors in Kenya and Mongolia.
The two countries have adopted national sustainable finance policies that give guidelines on how financial institutions can manage environmental and social risks and manage growing financial needs.
The principles are a powerful way to manage concrete business risks, increase market trust, and attract investment, especially toward green financing.
The MoU was signed at a sustainable finance-related learning visit of MBA representatives to Nairobi facilitated by the Dutch development bank FMO and IFC.
“The strong local ownership demonstrated by the KBA and MBA is the way forward in continuous advancement of such initiatives. We believe connecting both partners is of great value to advance global cooperation and further develop a sustainable banking sector,” highlighted Huib-Jan de Ruijter, Director Financial Institutions, FMO.
The Kenya-Mongolia cross border exchange is one of the peer knowledge exchange and learning visits by SBN members.
Tumurkhuu Davaakhuu, Vice President, MBA said they plan to share and learn best practices on the implementation of sustainable finance principles, developing our secretariats as centers for knowledge sharing in our respective regions.
Kenya’s banking industry, under their umbrella body the KBA, adopted the Sustainable Finance Guiding Principles in March 2015.
Habil Olaka, CEO, KBA said, “At KBA, we are pleased to see the tremendous interest and support from FMO and IFC in advancing Sustainable Finance practices between our two associations. We look forward to the learning partnership.”
“IFC is proud to connect Mongolian and Kenyan banks, as part of the wider SBN network, to share experience in this shared journey toward sustainable finance,” said Tuyen D. Nguyen, IFC Resident Representative in Mongolia.
IFC is also working with KBA and the Nairobi Securities Exchange (NSE) to support the green bonds program of Kenya’s banking industry through individual bank issuances.