Commercial banks in Kenya spent Ksh2.1 billion in 2018 towards corporate social investment, according to The Banking Industry Shared Value Report, 2019.
The report published by Kenya Bankers Association (KBA) said a cumulative Ksh6.7 billion has been spent over the past three years.
In addition, direct support by the industry of various initiatives was realized through marketing and sponsorships tied to social causes amounting to KSh1.7 billion.
The report further indicated that tax revenue paid to the Government has increased exponentially. In the 2017/2018 financial year, banks paid more than Sh73 billion to the Kenya Revenue Authority (KRA).
“Yet, much remains to be done to reduce the barriers to finance for vulnerable groups in society, including women, youth and persons with disabilities,” said Dr. Habil Olaka, chief executive KBA.
“Our key finding is the fact that when banks do good, our communities do better. Corporate Social Investment (CSI) is no longer a one-off engagement as previously perceived,” said Olaka.
In the report, banks invested more towards education, health and environment. However, “The challenge remains to harness the industry’s potential to drive Kenya’s sustainable economic development and realization of the Vision 2030.”
KBA says an enabling policy environment is critical.
The Banking Industry Shared Value Report, 2019, follows the 2016 report published by KBA, analyses how Kenyan banks are working with the various stakeholders in the public and private sectors, aligning to the national development agenda and Vision 2030 aspirations.