KCB secures Sh12.9 billion EBRD funding to boost lending to SMEs

KCB Bank Kenya has secured Sh12.9 billion in funding from the European Bank for Reconstruction and Development (EBRD) to expand financing for micro, small and medium enterprises (MSMEs), with a strong focus on women, youth-led businesses and environmentally sustainable investments.

Under the financing agreement, 35 percent of the funds will be allocated to businesses owned or led by women and young entrepreneurs, while 30 percent will support eligible green investment projects.

In addition to the funding, the EBRD will provide KCB with technical assistance, including specialised training, advisory services and technical expertise, to strengthen the bank’s capacity to finance environmentally sustainable projects.

EBRD Managing Director for Sub-Saharan Africa Dr. Heike Harmgart said the investment is the institution’s first in Kenya’s financial sector and will help improve access to finance for small businesses while supporting the country’s transition to a green economy.

“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,” she said.

KCB Bank Kenya Managing Director Annastacia Kimtai said the funding will enhance the bank’s ability to provide affordable credit to SMEs, particularly businesses that have traditionally faced challenges accessing financing.

“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,” Kimtai said.

KCB said it has already disbursed more than Sh156 billion to women-owned businesses through its Female-Led & Made Enterprises (FLME) programme. The bank has also extended Sh48.8 billion in green financing to support renewable energy, climate-smart agriculture and other environmentally sustainable projects.