KCB Bank Kenya has secured a US$100 million (KSh12.9 billion) financing facility from the European Bank for Reconstruction and Development (EBRD) to expand access to credit for micro, small and medium enterprises (MSMEs) across Kenya.
The facility is expected to strengthen financing for businesses while supporting entrepreneurship, job creation and sustainable economic growth.
Under the agreement, 35 per cent of the financing will be channelled to women- and youth-led enterprises, while another 30 per cent will support eligible green investments.
The green financing component will enable businesses to invest in climate-smart technologies and adopt more sustainable business practices, supporting Kenya’s transition towards a low-carbon economy.
The agreement marks EBRD’s first investment in Kenya’s financial sector, signalling increased international support for the country’s private sector and MSME financing ecosystem.
Speaking during the signing ceremony, EBRD Managing Director for Sub-Saharan Africa Dr Heike Harmgart said the partnership would help unlock the potential of Kenya’s private 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,” Harmgart said.
She added that the facility would support the transition to a greener economy while expanding opportunities for women and young entrepreneurs.
EBRD to support KCB’s green lending capacity
Beyond providing financing, EBRD will offer technical assistance to KCB Bank to strengthen its green lending capabilities.
The support will include specialised training, advisory services and technical expertise aimed at improving the bank’s capacity to finance environmentally sustainable investments.
KCB Bank Kenya Managing Director Annastacia Kimtai said the facility would enable the bank to extend affordable financing to SMEs that have traditionally faced barriers in accessing credit.
“This facility will strengthen our capacity to extend affordable financing to SMEs, particularly those who have traditionally faced barriers in accessing credit,” Kimtai said.
She added that KCB would continue increasing investments in renewable energy, climate-smart agriculture and other green projects that contribute to Kenya’s climate ambitions while generating long-term economic value.
KCB’s SME and green financing portfolio
The new facility builds on KCB’s existing support for Kenya’s MSME sector.
The bank has disbursed more than KSh156 billion to women entrepreneurs through its Female-Led & Made Enterprises (FLME) proposition, highlighting the growing role of targeted financing in supporting women-owned businesses.
KCB has also provided more than KSh48.8 billion in green financing loans for environmentally sustainable projects, including renewable energy and climate-smart investments.
By the end of March 2026, the bank had extended KSh13 billion in new credit to micro, small and medium enterprises.
The latest EBRD facility therefore comes as banks and development finance institutions increasingly seek to close the financing gap facing smaller businesses while directing capital towards inclusive and environmentally sustainable economic growth.
With more than a third of the new facility earmarked for women and youth-led enterprises and nearly a third dedicated to green investments, the partnership places financial inclusion and climate finance at the centre of KCB’s latest SME lending drive.
