By Gabriella Wanjiru Kiarie
| SUSTAINABLE FINANCE
KSh97 billion |
SUSTAINABLE AVIATION FUEL
32,000 tonnes a year |
JKIA DAILY JET FUEL
2.9 million litres |
Sustainability is rapidly moving from the margins of corporate strategy to the centre of business decisions. In 2026, companies are facing growing pressure from investors, customers, regulators and financial institutions to address climate risks while remaining competitive. For businesses, the challenge is no longer simply making sustainability commitments. It is finding practical ways to reduce environmental impact, strengthen resilience and turn emerging opportunities into commercial value.
Kenya’s financial sector provides a clear example of this shift. Standard Chartered Bank Kenya has continued expanding its sustainable-finance portfolio, with more than KSh97 billion mobilized since 2021 for areas including renewable energy, sustainable infrastructure, affordable housing and women-led businesses. The development highlights the growing role of financial institutions in directing capital towards projects that support environmental and social objectives.This matters because access to finance can determine whether businesses are able to invest in cleaner technology, energy efficiency and more resilient operations.
Kenya Airways and the move towards sustainable aviation -The transition is also reaching industries where reducing emissions is particularly difficult.On 12 May 2026, Kenya Airways and Rubis Energy Kenya signed an agreement in Nairobi to develop a proposed US$70.5 million–US$82.2 million sustainable aviation fuel refinery. The facility is expected to produce around 32,000 tonnes of SAF annually, using locally available waste oils and animal fats as feedstock.The project addresses a major challenge for aviation: aircraft cannot simply be replaced with zero-emission alternatives in the short term.
Sustainable aviation fuel offers a way to reduce the carbon intensity of existing operations while new technologies continue to develop.The scale of Kenya’s aviation-fuel demand makes the project particularly significant. Kenya Airways estimates that Jomo Kenyatta International Airport consumes around 2.9 million litres of jet fuel every day.The proposed refinery also demonstrates how environmental challenges can create new commercial opportunities. Waste materials that would otherwise have limited value could become inputs for a new fuel industry, creating potential economic activity alongside environmental benefits.
Climate change is increasingly being treated as a business risk rather than simply an environmental concern.Droughts can affect agricultural production, flooding can disrupt infrastructure and changing weather patterns can place pressure on supply chains. For businesses, these disruptions can translate directly into higher costs, lost revenue and operational delays.Companies can respond by assessing climate risks, diversifying suppliers, improving resource efficiency and investing in infrastructure that can withstand disruption.The businesses best prepared for these changes are likely to be those that treat environmental risks as part of wider financial and operational planning.
The strongest sustainability strategies are not simply about reducing emissions. They can also improve efficiency, open new markets and strengthen competitiveness.Businesses can reduce costs through lower energy and water consumption, use renewable energy to improve energy resilience, and develop products and services for growing markets such as clean transport, sustainable agriculture, recycling and renewable energy.The Kenya Airways-Rubis project illustrates this approach particularly well: a challenge facing the aviation industry is being approached as an opportunity to develop a new local industry.
As sustainability becomes more closely linked to finance and corporate decision-making, evidence is becoming increasingly important.Businesses need reliable information on areas such as emissions, energy use, waste, water consumption and climate-related risks. Setting measurable targets allows companies to demonstrate progress and identify where further investment is needed.For companies operating in Kenya, the direction of travel is clear. Sustainability is becoming part of how businesses manage risk, attract investment and plan for growth.
As sustainability becomes a defining factor in investment, competitiveness and long-term survival, the real question is: will businesses lead the transition—or wait until the cost of falling behind becomes impossible to ignore?
