Kenya has obtained a $100 million (Sh12.9 billion) financing facility from the European Bank for Reconstruction and Development (EBRD) aimed at expanding credit access for micro, small, and medium enterprises (MSMEs).

The funds will be disbursed through KCB Bank Kenya to support MSMEs seeking capital for business growth, job creation, and sustainable development.

Targeted Support for Women, Youth, and Green Investments

  • 35% of the facility is reserved for businesses led by women and youth, groups that have traditionally faced challenges accessing financing.
  • 30% is allocated to green investments, encouraging enterprises to adopt climate-smart technologies and sustainable business models.

This partnership marks EBRD's first investment in Kenya’s financial sector. EBRD’s Managing Director for Sub-Saharan Africa, Heike Harmgart, emphasized the importance of MSMEs as engines of economic growth and job creation. She highlighted the facility’s role in fostering a greener economy and expanding opportunities for underrepresented entrepreneurs.

In addition to funding, EBRD will provide KCB Bank with technical assistance to enhance its green lending capabilities through training and advisory services.

KCB Bank’s Commitment to Sustainable SME Financing

KCB Bank Kenya Managing Director Annastacia Kimtai noted that the facility will strengthen the bank's ability to offer affordable financing to SMEs, especially those historically excluded from credit access.

She reaffirmed KCB’s dedication to sustainable finance, including investments in renewable energy and climate-smart agriculture, aligning with Kenya’s climate goals.

KCB has a strong track record, having disbursed over Sh156 billion to women entrepreneurs under the Female-Led & Made Enterprises (FLME) initiative and more than Sh48.8 billion in green financing for environmentally sustainable projects.

This funding is expected to deepen support for diverse sectors across Kenya, leveraging KCB’s extensive lending network to stimulate growth and sustainability within the SME landscape.