In a move to promote transparency and sustainability in the financial sector, the Central Bank of Kenya (CBK) has introduced new rules requiring banks to disclose the environmental impact of their investments and projects. The move is aimed at combating greenwashing and promoting environmentally friendly practices in the industry.

Under the new rules, banks will be required to show the environmental impact of every business and project they fund, from solar startups to fossil fuel giants. This will force banks to prioritize sustainable ventures and direct capital towards projects that contribute positively to the environment. The CBK has given banks an 18-month deadline to comply with the new rules, which will come into effect in 2026.

The move is seen as a significant step towards promoting transparency and accountability in the financial sector. It will also open up opportunities for climate-resilient ventures to access funding and for international investors to invest in projects that have a positive environmental impact.

In other news, Nigerian fintech startup Paga has expanded its financial ecosystem to include three businesses: Paga Engine, a fintech infrastructure; Paga, a consumer-focused fintech; and Doroki, a retail management platform. The move is aimed at exerting control over transactions and improving the customer experience.

Paga's ecosystem has achieved significant scale, with an average monthly transaction volume of ₦1 trillion ($653 million) and a growth rate of 30% year-on-year. The company's consumer business has also seen significant growth, with a 200% increase in transactions last year.

The expansion of Paga's ecosystem is seen as a strategic move to increase control over transactions and improve the customer experience. It will also enable the company to derive more value from its transactions and improve its profitability.

In related news, Sterling Bank, a Nigerian commercial bank, has announced plans to cancel transfer fees, a move that has sparked debate in the industry. While the move is seen as a customer-friendly initiative, it has raised concerns about the sustainability of the business model, given the significant revenue generated from transfer fees.

Kenya is also set to reshape its crypto market with a new law that lays out rules for stablecoins, ICOs, digital wallets, crypto exchanges, and advisors. The law, which is expected to come into effect soon, will provide a clear framework for the regulation of cryptocurrencies in the country.

The new law is seen as a significant step towards promoting trust and growth in the crypto market. It will also provide a clear framework for the regulation of cryptocurrencies, which has been a major challenge in the industry.

Overall, the developments in Kenya and Nigeria are significant steps towards promoting transparency, sustainability, and growth in the financial sector. They demonstrate the commitment of regulators and industry players to promoting a more responsible and customer-friendly financial system.