Nairobi, Aug. 4 -- New climate disclosure requirements will demand significant preparation from banks. Those that use the available data and capabilities to improve their lending and risk management can build stronger and more resilient businesses.

East Africa has moved between climate extremes in recent years. A prolonged drought gripped the Greater Horn of Africa in early 2023, followed by severe flooding in 2024 that destroyed crops, damaged infrastructure and interrupted business in Kenya.

These events are not only humanitarian and economic crises, but also financial events. Failed crops reduce income, flooded roads stop companies moving goods, and repeated flooding can lower property values and raise insurance costs. Each event can...