KCB Bank Kenya has secured a US$100 million (Ksh. 12.9 billion) financing facility from the European Bank for Reconstruction and Development (EBRD) to expand credit access for micro, small, and medium enterprises (MSMEs) across the country.
The is EBRD’s first-ever investment in Kenya’s financial sector and represents a significant push toward inclusive economic growth, job creation, and climate action.
Under the agreement framework, 35 percent of the total funds will be dedicated to women- and youth-led enterprises, while 30 percent is earmarked for eligible green investments, helping local businesses adopt climate-smart technologies and sustainable practices.
EBRD will also provide technical assistance to strengthen KCB’s internal green lending capacity. This includes specialized training, advisory services, and technical expertise to enhance the bank’s evaluation and support of environmentally sustainable projects.
“This investment marks our first investment in Kenya’s financial sector,” said Dr. Heike Harmgart, EBRD’s Managing Director for Sub-Saharan Africa, during the signing ceremony. “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 expand opportunities for women and young entrepreneurs.”
Access to affordable credit remains a persistent bottleneck for smaller enterprises in East Africa. KCB Bank Kenya Managing Director Mrs. Annastacia Kimtai noted that the capital injection directly addresses this hurdle while reinforcing the bank’s broader ESG goals.
“This facility will strengthen our capacity to extend affordable financing to SMEs, particularly those who have traditionally faced barriers in accessing credit,” Kimtai said. “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 new facility builds on KCB Bank’s ongoing initiatives in MSME funding and sustainable finance. Through its Female-Led & Made Enterprises (FLME) initiative, the bank has previously disbursed over Ksh. 156 billion to women entrepreneurs. It has also extended more than Ksh. 48.8 billion in green financing loans targeting renewable energy and climate-resilient initiatives.
In the first quarter of 2026 alone, KCB extended Ksh. 13 billion in new credit to the MSME sector.