Central Bank of Kenya /
European Investment Bank

Climate Risk Disclosure Framework & Green Finance System Design

As climate risk becomes a systemic financial stability concern, regulators are under increasing pressure to translate global disclosure standards into enforceable national frameworks.

In Kenya, this transition is redefining the financial regulatory agenda, with central banking supervision increasingly shaped by sustainability disclosure imperatives and global prudential standards.

Lybra Consulting supported the Central Bank of Kenya under European Investment Bank technical assistance in the design of foundational regulatory instruments for climate risk disclosure and green finance taxonomy development.

The assignment required alignment between emerging international sustainability disclosure frameworks, particularly IFRS S1 and IFRS S2 and domestic financial regulatory architecture, ensuring applicability within Kenya’s banking supervision context.

Lybra’s role focused on structuring the Climate Risk Disclosure Framework and developing the Kenya Green Finance Taxonomy, alongside supporting ESG integration within CBK’s institutional strategy and operational model.

The engagement also extended to the development of an implementation roadmap for IFRS-aligned sustainability disclosure, bridging regulatory intent with supervisory execution capacity.

This work contributes to the foundational infrastructure shaping climate-related financial risk governance within Kenya’s financial system, with direct implications for capital allocation, regulatory oversight, and systemic resilience.

This work extends beyond framework design. Lybra is supporting the integration of ESG considerations into the Central Bank’s strategy, operations, and supervisory approach, while establishing a clear roadmap for implementation of IFRS S1 and IFRS S2.

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