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2013 Sustainability Report KCB Group Sustainability Report 1 Contents Introduction 2 Report Boundary 3 Chairman’s Report 4 CEO’s Statement 6 Key Highlights of our Performance 8 About KCB 10 Key Highlights from our Regional Operations 10 KCB Sustainability Vision 2013 12 Key Achievements in 2013: 12 Our 10 Point Action Plan 13 Our Customers 14 KCB Micro Banking for Innovative Minds 14 Customer Satisfaction 14 Aligning to the New Regulatory Environment 15 Financial Stability 16 Reducing Risk by Embracing Centralised System 16 Risk 17 KCB Revenues and Costs 18 Economic Sustainability KCB Foundation: Up-Skilling Small Business 19 Economic Sustainability 20 Increasing Access through Agency Banking 20 Contributions to Society 20 Staff Numbers 20 Staff Training 21 Staff Gender Balance 21 Staff Recruitment 22 Staff Separations 22 Banking the Unbanked 23 Social Sustainability 24 Reaching out to Rural Entrepreneurs 24 Procurement Policy 24 Making Secondary Education Affordable 25 Environmental Sustainability 26 Investing in the Sun 26 KCB’s Carbon Footprint 26 Helping Communities to Benefit from Re-afforestation 27 Our Progressive Performance 28 Financial 28 People and Values 28 Environment 30 Additional Notes/ Assumptions for Environmental Data 30 GRI Indicator Tabletor Table 31 2 Report Boundary since 2007 since 2006 Uganda South Sudan permanent permanent 336employees 408employees 16 ATMs 14 Branches 27ATMs 21Branches since 2008 since 1896 Rwanda Kenya permanent permanent 316employees 4011employees 19ATMs 11Branches 877ATMs 177Branches since 2012 since 1997 Burundi Tanzania permanent permanent 54 employees 250employees 2ATMs 1Branch 14ATMs 12Branches Figure 1: KCB Key Facts and Operating Regions The boundary of this report includes all KCB operations for the 2011, 2012 and 2013 years. All information disclosed with regards to financial, economic and social performance covers KCB Kenya and all subsidiaries for the period. The exceptions are: 1. Social Performance, where all HR data quoted is limited to Kenya only for the same period; and 2. Environmental Performance, where all information disclosed pertains to KCB Kenya alone for 2012 and 2013 only. We are currently implementing process improvements to increase both the granularity and completeness of the data collection process that underpins the output of this report. The intension is to improve reporting capability across all areas and enable reporting across all metrics, operating regions and future periods. 3 Chairman’s Report Group Chairman Mr. Ngeny Biwott Key to our success is the quality and continuity in the leadership of our organisation. Economic Sustainability: To actively our 2012/2013 achievements in this Our Sustainability contribute to the broader economies we Sustainability Report, ideas keep surfacing operate in through job creation, financial for how we can do better and improve on Journey contribution and exemplary corporate its content. We believe that KCB is in a behaviour to ensure that we earn our unique position to build a truly sustainable licence to operate in all our markets. legacy for East Africa and the whole The United Nations World Commission on continent at large in the banking industry. the Environment and Development first Social Sustainability: To operate in We are determined to exploit every chance defined sustainable development in 1983 as a growing economy where KCB is an we have to do so as we take this journey. “development that meets the needs of the integral enabler helping to provide secure present without compromising the ability of livelihoods and actively participate in the Among the highlights in the 2013 future generations to meet their needs.” In communities in all our markets. Sustainability Report is our contribution 2012, the United Nations Conference on towards community social investment Sustainable Development (Rio+20) calls on Environmental Sustainability: To programmes, innovation and technology all countries “to secure renewed political maximise the reduction, reuse and driven products and services, growth in commitment for sustainable development, recycling of materials and non-renewable agency banking, review of the organisation to assess the progress to date and the resources we use in our business to structure, financial inclusion agenda and remaining gaps… and address new and protect the natural environment for future continued profitability of our business. emerging challenges.” generations. These are well outlined in the report and going forward, we have now defined Last year in August, 2013, the KCB Main These four pillars form the foundation of our our short term, medium term and long Board through the Risk and Strategy corporate strategy in helping the Bank to term objectives for the business. As our Committees approved the KCB Group drive revenues, reduce costs, reduce risks sustainability intelligence matures in the Sustainability Framework for the Bank and and build on our brand and reputation. coming years, we will begin to introduce embedding it progressively into our day to This is informed from the perspective that sustainability assurance audits, raising the day business. As we move towards a future KCB has a broader societal role that goes bar on our determination to demonstrate of sustainable banking, the framework has beyond delivering profits. The Bank plays the actual impact of our business on the identified four key pillars that will drive our an active role in driving economies of the economy, society and the environment. sustainability agenda vision now and into different sectors, developing communities the future as follows: and improving the lives of our customers. I trust that the Sustainability Report for 2013 provides new insights into the KCB Group Financial Stability: To ensure that KCB KCB Group Sustainability Reporting role, activities and sustainability impact. anticipates, prepares for and manages started in 2007 but 2013 marks the first I can confidently assure our stakeholders risk, credit control and all compliance year of sustainability being embedded in that sustainability has been elevated to a requirements to run our business in the our core business strategy. As we examine new level of importance in KCB and that most efficient way possible. the Board oversight is vigilant. Thank you. 4 Organisational Design BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER COUNTRY MANAGING DIRECTORS GROUP GROUP CHIEF BUSINESS OFFICER, MANAGING DIRECTOR CHIEF INFORMATION CHIEF FINANCIAL OFFICER COMPANY SECRETARY KENYA KENYA TECHNOLOGY OFFICER DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR CORPORATE & CREDIT HUMAN RESOURCES RISK AUDIT REGULATORY AFFAIRS Figure 2: KCB Organisational Design for 2013 5 CEO Statement Chief Executive: Mr. Joshua Oigara We believe that providing the right opportunities for local entrepreneurs of Sustainability: all sizes will stimulate the economy and Our Way of Life drive our society forward. We are happy to release our 2013 KCB sustainability performance going forward None of our achievements would be Group Sustainability Report. This comes and will be our platform for embracing possible without the dedication of our after the KCB Group Board approved the sustainable management practices as a employees—nearly 6,000 across the Sustainability Framework allowing for the way of life at KCB. six countries in which we operate. Our formal implementation of sustainability in workforce provides creative and innovative the Bank’s business. KCB’s sustainability In this report, among the key highlights for ideas and solutions to our customers to journey started in the year 2007 and today the year 2013 are: make banking accessible and convenient. it is a fulfilment of our vision to deliver Our people have embraced our sustainability long lasting benefits to society through a • Managing our carbon emissions efforts through the KCB Green Agenda comprehensive integration process. through operational efficiency, cost programme and we could not succeed management initiatives and shared without their tireless commitment. Together, We must be able to look back with pride services. through partnerships and collaborations in on KCB Group’s contribution towards a • Embracing technology in all our this sustainability journey, we will leave a stronger economy, a more equitable society, operations and automating operational lasting legacy to the next generation. and a protected natural environment in processes through innovation. the region. Today, our commitment to • Empowering our local communities stakeholders is to demonstrate every year, through capacity building, in a Sustainability Report, how decisions entrepreneurial skills, market-value None of our and actions in our banking businesses are addition and financial inclusion. achievements would rooted in a deep concern for sustainability • Implementing our 10 point action in all we do. Our objective is to progressively plan for sustainability in the short, be possible without implement sustainability initiatives in our medium and long term priorities for our the dedication of our business operations to result in tangible business. business benefits. • Approval of the Group Sustainability employees—nearly Framework that forms the road map for 6,000 across the six The Sustainability Report for 2013 is its implementation and entrenchment countries in which we organised to reflect the financial, economic, in our business. social and environmental dividends that • Implementation of Social and operate and drive our KCB Group has delivered and to show Environmental Management
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