CBK Climate Risk (2021) & ESG Green Housing Refinancing Audit
Evaluate physical & transition climate risk shocks on loan portfolio ECL, collateral haircut stress, and IFC EDGE green refinancing eligibility for KMRC concessional credit windows.
CBK 2021 Guidance & IFC EDGE Standards
CBK Climate Risk & ESG Green Refinancing Audit
Assess portfolio physical/transition climate shocks, IFRS 9 ECL haircut stress, and KMRC/EIB green refinancing eligibility.
ACTION REQUIRED
Portfolio Climate & ESG Variables
Gross Loan Book (KES)KES 600,000,000
Agricultural & Climate-Vulnerable Exposure (%)25%
Climate-Adjusted IFRS 9 ECL
KES 39.26M
+118.1% Increase
IFC Green Refinancing Eligible
KES 70.0M
KES 1.75M/yr Savings
IFRS 9 Provisioning Breakdown under Climate Stress (KES Millions)
Actuarial ESG & CBK Recommendations
- Strong IFC green refinancing position: KES 70.0M eligible for KMRC green mortgage tranches.
- Establish a supplementary KES 21.26M climate ECL reserve buffer to prevent SASRA solvency ratio erosion.