Kenya’s banking industry invested 2.1 billion shillings ($19 million) in Corporate Social Responsibility (CSR) in 2018 and approximately 6.7 billion shillings ($59 million) over the past three years, according to the 2019 Kenya Banking Industry shared value report released on Thursday by the Kenya Bankers Association (KBA).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 ($88 million) since 2015 in CSR activities, which has contributed greatly to Kenya’s realization of the Sustainable Development Goals (SDGs).
Speaking at the release of the industry’s social responsibility report in Nairobi, KBA Governing Council Representative and KCB Bank Kenya Managing Director 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.
In terms of contributing to Kenya’s overall economic growth, in the 2017/2018 financial year, the banking industry paid more than 73 billion shillings ($716 million) in taxes to the national government.
In the same period, the KBA report found banks have invested 39 billion shillings in employment creation through jobs and contracts which generated further revenue to fund the National Budget.
KBA CEO, Dr. Habil Olaka noted that as much as banks are making a greater contribution to the economy and society, there are hurdles faced by the industry, including the Banking (Amendment) Act, 2016, which introduced interest rate controls.
“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,” said Dr. Olaka.
Source: Journal du Cameroun