The Central Bank of Kenya (CBK) has developed and released the Kenya Green Finance Taxonomy (KGFT) and the Climate Risk Disclosure Framework (CRDF) for the banking sector.
The KGFT is expected to guide target institutions on evaluation and classification of their economic activities according to the extent to which the activities support or hinder climate objectives and promote the transition to a low-carbon economy.
A press statement released today by CBK stated that this is part of their ongoing second-generation reforms aimed at greening the banking sector in line with evolving reforms to mitigate the risks of climate change.
Institutions are expected to apply the taxonomy in assessing the degree to which their business activities are aligned under the taxonomy's guiding principles, the statement added.
