Co-operative Bank of Kenya has partnered with the European Bank for Reconstruction and Development (EBRD) under a US$100 million (€86.2 million) financing programme aimed at expanding access to financing for Kenyan businesses.
The partnership has already seen the EBRD conclude a US$50 million (€43.1 million) cross-currency swap agreement with Co-operative Bank, marking the first use of the Kenya Shilling Overnight Interbank Average (KESONIA) in such a transaction.
The agreement is expected to strengthen Co-operative Bank’s capacity to support businesses with financing denominated in Kenyan shillings, particularly enterprises whose revenues are primarily generated in the local currency.
By expanding access to local-currency financing, the partnership can help businesses reduce exposure to foreign-exchange risks that may arise when borrowing in foreign currencies.
For Co-operative Bank, the transaction also places the lender at the centre of efforts to deepen Kenya’s local financial markets and promote the use of KESONIA as a reference rate for financial transactions.
Mutahe Karuoro, Treasurer at Co-operative Bank of Kenya, said the transaction represents an important milestone for the bank and Kenya’s financial markets.
“Bringing KESONIA to life has been a collective journey — one built on trust, technical rigour, and a shared vision for our financial markets,” Karuoro said.
He added that the transaction could open opportunities for greater liquidity, improved price discovery and stronger participation by local and international investors.
The EBRD said the US$50 million swap represents the first utilisation of the broader US$100 million facility agreed with Co-operative Bank.
Abdessamad Abouti, EBRD Regional Head of Local-Currency Portfolio Management, said the transaction demonstrates how financial-market reforms can move from design to implementation.
The partnership comes as Kenya continues to develop internationally recognised financial-market standards. Wider adoption of KESONIA-linked transactions is expected to support transparent pricing and improved risk management.
EBRD began investing in Kenya in 2025, focusing on private-sector development, financial inclusion, sustainable infrastructure and the green transition.