Kenya’s small businesses are set to receive a major financing boost after KCB Bank Kenya secured a KSh12.9 billion (US$100 million) funding facility from the European Bank for Reconstruction and Development (EBRD).
The investment is expected to increase access to affordable credit for micro, small and medium enterprises (MSMEs), strengthen women and youth entrepreneurship, and accelerate climate-smart investments across the country.
The financing marks a significant milestone for both institutions, as it represents the EBRD’s first investment in Kenya’s financial sector, underscoring growing international confidence in Kenya’s banking industry and its private sector.
The facility is designed to address one of the biggest challenges facing Kenyan businesses,limited access to affordable financing. MSMEs account for the majority of businesses in Kenya and employ millions of people, yet many continue to struggle to secure credit needed for expansion, innovation and job creation.
Women, Youth and Green Businesses to Benefit
Under the financing agreement, 35 percent of the facility has been earmarked for women- and youth-led enterprises, groups that have historically experienced greater challenges accessing formal credit despite playing a critical role in Kenya’s economy.
Another 30 percent of the funds will support eligible green investments, enabling businesses to invest in renewable energy, energy-efficient technologies, climate-smart agriculture and other environmentally sustainable projects that contribute to Kenya’s transition to a low-carbon economy.
The remaining funds will be used to expand lending to businesses across different sectors, helping companies grow, create jobs and strengthen the country’s private sector.
EBRD: Supporting Kenya’s Economic Growth
Speaking during the signing ceremony, Dr. Heike Harmgart, Managing Director for Sub-Saharan Africa at the EBRD, said the partnership reflects the institution’s commitment to unlocking Kenya’s private sector potential.
She noted that MSMEs remain the backbone of economic growth and employment, adding that the investment will not only improve access to finance but also create greater opportunities for women entrepreneurs, young business owners and companies investing in sustainable solutions.
Beyond providing financing, the EBRD will also offer technical assistance, advisory services and specialised training to help KCB strengthen its green lending programme and build capacity in financing environmentally sustainable projects.
KCB Expands Support for Entrepreneurs
KCB Bank Kenya Managing Director Annastacia Kimtai said the funding will enable the bank to provide more affordable financing to SMEs, particularly businesses that have traditionally faced barriers in accessing credit.
She said the bank remains committed to increasing investments in renewable energy, climate-smart agriculture and other green initiatives that support Kenya’s climate goals while generating long-term economic value.
The new facility builds on KCB’s extensive support for Kenya’s SME ecosystem.
Through its Female-Led and Made Enterprises (FLME) programme, the bank has already disbursed more than KSh156 billion to women-owned businesses, helping entrepreneurs expand operations, increase productivity and create employment.
KCB has also provided over KSh48.8 billion in green financing, supporting projects in renewable energy, sustainable agriculture and environmentally friendly technologies.
By the end of the first quarter of 2026, the bank had extended KSh13 billion in new loans to MSMEs, reaffirming its commitment to supporting business growth despite a challenging economic environment.
Why the Funding Matters
The new financing comes at a time when many Kenyan businesses continue to face high borrowing costs, rising operational expenses and the effects of climate change.
By increasing the availability of affordable credit, the KSh12.9 billion facility is expected to help businesses invest in expansion, purchase equipment, adopt clean technologies and create new employment opportunities.
For women and young entrepreneurs, who often face additional barriers in securing financing, the dedicated allocation could unlock new opportunities for innovation, enterprise growth and financial inclusion.
The partnership also reinforces Kenya’s growing focus on sustainable finance by encouraging investments that support climate resilience while driving inclusive economic development.
As demand for financing continues to rise, the KCB-EBRD partnership is expected to play a key role in strengthening Kenya’s SME sector, supporting entrepreneurship and advancing the country’s green growth agenda.
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