KCB Bank Kenya has secured Sh12.9 billion in financing from the European Bank for Reconstruction and Development (EBRD) to support lending to women and youth-led enterprises as well as green businesses. This marks the first time the London-based EBRD has invested in Kenya's banking sector since its establishment in 1991.

The facility stipulates that 35 percent of the funds will be allocated to women and youth-led businesses, while 30 percent will finance eligible green investments aimed at promoting climate-smart technologies and sustainable practices.

Supporting MSMEs and Green Growth

Dr Heike Harmgart, EBRD’s Managing Director for sub-Saharan Africa, highlighted that the partnership with KCB Bank aims to channel vital financing to micro, small, and medium enterprises (MSMEs), which are key drivers of job creation and economic growth in Kenya. The initiative also seeks to advance Kenya’s transition to a greener economy and expand opportunities for women and young entrepreneurs.

Building on Existing Support

This new loan complements previous international funding received by KCB targeting underserved groups. Last year, British International Investment (BII) extended a Sh12.9 billion facility, while the European Investment Bank (EIB) provided Sh32 billion in 2024. These partnerships aim to address barriers such as limited collateral, which often restricts women and youth from accessing credit.

Government efforts to support these groups through funds like the Youth Enterprise Development Fund, Women Enterprise Fund, and Hustler Fund have had limited impact, underscoring the importance of such private sector collaborations.

KCB’s Growing Role in Inclusive Finance

KCB Kenya’s Managing Director, Annastacia Kimtai, stated that the new facility will enhance the bank’s ability to offer affordable financing to SMEs that have traditionally faced challenges in obtaining credit.

As of March 2026, KCB’s loan book stood at Sh1.17 trillion, up from Sh1 trillion the previous year, with Sh13 billion extended to MSMEs in the first quarter alone. Borrowings from development partners, including EBRD, EIB, and Proparco, rose to Sh72.4 billion, supporting the bank’s capacity to lend at competitive rates.

Technical Assistance for Green Lending

Alongside the financing, EBRD will provide KCB with technical assistance to enhance its green lending capabilities. This will include specialized training, advisory services, and technical expertise to better support environmentally sustainable investments.