KCB has secured a US$100 million (KShs. 12.9 billion) financing facility from the European Bank for Reconstruction and Development (EBRD) to expand access to credit for micro, small and medium enterprises (MSMEs).
30% of the funds will be allocated for eligible green investments to support businesses to adopt climate-smart technologies and environmentally sustainable practices. 35% of the funds will be allocated to women and youth-led enterprises.
The partnership also marks EBRD’s first investment in Kenya’s financial sector. Speaking during the signing ceremony, EBRD Managing Director for Sub-Saharan Africa, Dr. Heike Harmgart, said the facility will help channel much-needed financing to MSMEs, which are key drivers of job creation and economic growth, while supporting Kenya’s transition to a greener economy.
“This investment marks our first investment in Kenya’s financial sector. We are helping to channel much-needed financing to MSMEs, the engines of job creation and economic growth. 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.”
Beyond financing, EBRD will provide technical assistance to KCB to strengthen its green lending capabilities through specialized training, advisory services and technical expertise.
KCB Bank Kenya Managing Director Annastacia Kimtai said the facility will enhance the bank’s ability to provide affordable financing to SMEs, particularly those that have traditionally struggled to access credit.
“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,” she said.
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