KCB Bank Kenya has secured a US$100 million (KSh12.9 billion) financing facility from the European Bank for Reconstruction and Development (EBRD) in a move expected to expand access to credit for micro, small and medium enterprises (MSMEs) across the country.
The funding will support businesses that have traditionally struggled to access affordable financing, while also advancing investments in women-led enterprises, youth businesses and environmentally sustainable projects.
Women, Youth and Green Investments to Benefit
Under the financing arrangement, 35 per cent of the facility has been earmarked for women and youth-led enterprises, while 30 per cent will finance eligible green investments, including renewable energy, climate-smart technologies and other sustainable business initiatives.
The funding is expected to strengthen financial inclusion while supporting Kenya’s transition towards a greener economy.
EBRD Makes First Investment in Kenya’s Financial Sector
Speaking during the signing ceremony, EBRD Managing Director for Sub-Saharan Africa, Dr Heike Harmgart, said the partnership marked the institution’s first investment in Kenya’s financial sector.
“This investment marks our first investment in Kenya’s financial sector. By partnering with KCB Bank, 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,” said Dr Harmgart.
Technical Support for Green Lending
In addition to the financing, EBRD will provide technical assistance to KCB Bank to strengthen its green lending capabilities through specialised training, advisory services and technical expertise.
The support is expected to enhance the bank’s ability to finance environmentally sustainable projects and expand access to green financing for businesses.
KCB Targets Greater SME Financing
KCB Bank Kenya Managing Director Annastacia Kimtai said the facility would enhance the lender’s capacity to provide affordable credit to SMEs, particularly businesses that have faced barriers in accessing financing.
Peter Ng’eno appointed Corporate Banking Director, KCB Bank Kenya
“This facility will strengthen our capacity to extend affordable financing to SMEs, particularly those who have traditionally faced barriers in accessing 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.
KCB’s Growing Support for SMEs
The latest funding builds on KCB Bank’s continued investment in Kenya’s MSME sector.
According to the bank, it has disbursed more than KSh156 billion to women entrepreneurs through its Female-Led & Made Enterprises (FLME) proposition. It has also extended more than KSh48.8 billion in green financing loans supporting renewable energy and climate-smart investments.
By the end of March 2026, KCB had advanced KSh13 billion in new credit to micro, small and medium enterprises, underlining its focus on supporting business growth and expanding access to finance.
Boost for Kenya’s MSME Sector
The new facility is expected to increase financing for small businesses, improve financial inclusion and accelerate investment in sustainable enterprises. The partnership also reinforces KCB Bank’s position as one of Kenya’s leading lenders to SMEs while supporting national efforts to create jobs and drive inclusive economic growth.
