KCB Bank Kenya has secured Sh12.9 billion from the European Bank for Reconstruction and Development (EBRD) to expand lending to micro, small and medium enterprises (MSMEs), with a focus on women, youth-led businesses and green investments.
Under the facility, 35 percent of the funding will be directed to women and youth-led enterprises, while 30 percent will finance eligible green investments.
EBRD will also provide technical assistance to KCB Bank through specialised training, advisory services and technical expertise to strengthen its green lending capabilities.
EBRD Sub-Saharan Africa Managing Director Dr. Heike Harmgart said the investment, the institution’s first in Kenya’s financial sector, will help channel much-needed financing to small businesses while supporting the country’s transition to a greener 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.”
KCB Bank Kenya Managing Director Annastacia Kimtai said the facility will strengthen the bank’s capacity to extend affordable financing to SMEs, particularly those that have traditionally struggled to access credit.
“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.”
KCB said it has already disbursed more than Sh156 billion to women entrepreneurs through its Female-Led & Made Enterprises (FLME) proposition and Sh48.8 billion in green financing to support environmentally sustainable projects.
