ARTICLE · 28 MARCH 2025

Kenya's ESG Evolution: A Financial And Legal Perspective

Anjarwalla & Khanna

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Over the past few years, we have witnessed the evolution of ESG (environmental, social and governance) matters and their impact on businesses in Kenya firsthand, particularly in how ESG principles influence lending decisions.

KenyaFinance and Banking

Shellomith Irungu

Over the past few years, we have witnessed the evolution of ESG (environmental, social and governance) matters and their impact on businesses in Kenya firsthand, particularly in how ESG principles influence lending decisions. How that trajectory will be impacted by the new direction the United States is taking, essentially extinguishing any reference to DEI, climate change, and "woke" issues, remains to be seen. ESG will continue to be significant to Kenya and the region since climate change is real, and in Europe, where many DFIs are headquartered, environmental, social and governance issues remain relevant.

The Growing Role of ESG in Finance
Kenya's ESG journey dates to 2008 when former President Mwai Kibaki launched Vision 2030. This ambitious blueprint aimed to transform Kenya into a middle-income, newly industrialised nation while prioritising sustainable development. In our experience the financial sector in Kenya is no longer just incorporating

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