Central Bank of Kenya - Guidance on Climate-Related Risk Management

In October 2021, the Central Bank of Kenya issued this guidance under section 33(4) of the Banking Act, which empowers the Central Bank of Kenya to guide institutions in order to maintain a stable and efficient banking and financial system.

The guidance recognises that climate change poses a substantial risk and can pose an opportunity for the financial sector and requires banks to:
a)  embed the consideration of the financial risks from climate change in their governance arrangements.
b)  incorporate the financial risks from climate change into their existing financial risk management practice.
c)  develop an approach to disclosure on the financial risks from climate change.