KCB secures Ksh.12.9 billion EBRD funding to boost SMEs, green projects lending

The funding agreement is expected to boost access to affordable credit for small businesses, which remain a key driver of Kenya's economy but continue to face financing constraints.

Under the arrangement, 35 per cent of the facility will be allocated to women- and youth-led enterprises, while 30 per cent will support eligible green investments, including projects that adopt climate-smart technologies and environmentally sustainable business practices.

The EBRD said the investment marks its first financing of Kenya's financial sector and is aimed at strengthening private sector growth.

EBRD Managing Director for Sub-Saharan Africa, Dr. Heike Harmgart, said the partnership would help channel much-needed financing to MSMEs while supporting Kenya's transition to a greener economy.

She noted that women and young entrepreneurs are central to the country's long-term economic growth and that expanding their access to finance would enhance job creation and business development.

In addition to the financing, the EBRD will provide technical assistance to KCB Bank to strengthen its green lending portfolio through training, advisory services and technical expertise.

KCB Bank Kenya Managing Director Annastacia Kimtai said the facility would enhance the lender's ability to extend affordable credit to small businesses, particularly those that have traditionally struggled to access financing.

She said the bank would continue investing in renewable energy, climate-smart agriculture and other environmentally sustainable projects that support Kenya's climate goals while creating long-term economic value.

The new facility builds on KCB's existing support for the MSME sector. The bank says it has disbursed more than KSh156 billion to women entrepreneurs through its Female-Led & Made Enterprises programme and KSh48.8 billion in green financing for renewable energy and other climate-related investments.

By the end of March 2026, KCB had also extended KSh13 billion in new credit to micro, small and medium enterprises, underscoring continued demand for business financing.