Women, youth-owned businesses and climate-focused enterprises will receive the lion’s share of a new $100 million (Sh13billion) financing facility from European Bank for Reconstruction and Development.
Under the agreement, 35 per cent of the facility has been earmarked for women and youth-led enterprises, while another 30 per cent will finance green investments, signalling a growing shift by international financiers towards inclusive and climate-focused lending in Kenya.
The investment was secured by KCB marks EBRD’s first financing in Kenya’s banking sector.
EBRD Managing Director for Sub-Saharan Africa Heike Harmgart said the funding is intended to unlock the growth potential of Kenya’s private sector by increasing access to finance for micro, small and medium-sized enterprises (MSMEs), which account for the bulk of employment and economic activity.
“We are particularly pleased that this facility will contribute to the transition to a greener economy and will expand opportunities for women and young entrepreneurs, whose success is critical to Kenya’s long-term prosperity,” said Harmgart.
The lender will provide technical assistance through specialised training, advisory services and technical expertise, enabling KCB to expand lending for renewable energy, climate-smart agriculture and other environmentally sustainable investments.
The move comes as Kenya’s banking sector increasingly aligns lending with environmental, social and governance (ESG) principles amid growing demand for climate finance from businesses seeking to cut energy costs, improve resilience and comply with sustainability standards demanded by export markets and investors.
KCB Kenya Managing Director Annastacia Kimtai said the facility would enhance the lender’s ability to provide affordable financing to SMEs, particularly businesses that have historically faced barriers to accessing credit, while supporting investments that contribute to Kenya’s climate ambitions.
“We remain committed to sustainable finance by increasing investments in renewable energy, climate-smart agriculture and other green projects that contribute to Kenya’s climate ambitions while creating long-term economic value,” said Kimtai.
The latest facility builds on KCB’s expanding SME and sustainability lending portfolio.
The bank says it has already disbursed more than Sh156 billion to women entrepreneurs through its Female-Led and Made Enterprises programme and extended over Sh48.8 billion in green financing for renewable energy and climate-smart investments.
By the end of March this year, it had also advanced Sh13 billion in new credit to MSMEs.
The EBRD financing is expected to strengthen KCB’s position in the fast-growing market for sustainable finance while widening access to capital for women entrepreneurs, young business owners and firms investing in Kenya’s transition to a low-carbon economy.
