Key points
- EBRD has approved a $100 million loan for KCB Bank Kenya to boost MSME financing.
- Thirty-five per cent of the facility will support women- and youth-led businesses.
- Thirty per cent of the funds will finance eligible green investments.
- KCB Bank will receive technical assistance to strengthen its green lending capabilities.
Main story
The European Bank for Reconstruction and Development (EBRD) has approved a $100 million loan for KCB Bank Kenya to improve access to finance for micro, small and medium-sized enterprises (MSMEs), with a focus on underserved businesses, women, young entrepreneurs and green investments.
The facility, valued at approximately €85 million, is expected to expand lending to businesses that play a critical role in economic growth and job creation across Kenya.
Under the arrangement, 35 per cent of the credit line will be directed to women- and youth-led enterprises, while 30 per cent will finance eligible environmentally sustainable investments.
KCB Bank will also receive technical assistance, including training, advisory support and specialist expertise, to strengthen its capacity for green lending.
EBRD Managing Director for Sub-Saharan Africa, Heike Harmgart, described the facility as the bank’s first investment in Kenya’s financial sector.
“This is our first investment in Kenya’s financial sector. By partnering with KCB Bank, we are helping to channel much-needed financing to MSMEs, which are engines of job creation and economic growth. We are particularly pleased that this facility will support the transition to a greener economy and increase 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 financing would strengthen the bank’s ability to extend affordable credit to businesses that have traditionally struggled to access funding.
“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.”
The EBRD began investing in Kenya in 2025, focusing on private-sector development, financial inclusion, sustainable infrastructure and the green transition.
The issues
MSMEs remain a major driver of employment and economic activity across Africa but continue to face significant financing gaps. Development finance institutions are increasingly working with commercial banks to improve credit access while supporting climate-focused investments and inclusive economic growth.
What’s being said
“This is our first investment in Kenya’s financial sector. By partnering with KCB Bank, we are helping to channel much-needed financing to MSMEs, which are engines of job creation and economic growth.”
“This facility will strengthen our capacity to extend affordable financing to SMEs – particularly those who have traditionally faced barriers in accessing credit.”
Bottom line
The financing strengthens KCB Bank’s lending capacity while supporting Kenya’s MSME sector, expanding opportunities for women and young entrepreneurs, and accelerating investments that support the country’s green transition.
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