KCB Bank Kenya has secured a US$100 million (KSh12.9 billion) financing facility from the European Bank for Reconstruction and Development (EBRD), strengthening its capacity to provide much-needed credit to micro, small and medium enterprises (MSMEs) across the country.
The funding is expected to improve access to affordable financing for businesses, particularly those that have historically struggled to secure credit. Beyond expanding lending, the facility also supports Kenya’s broader goals of driving entrepreneurship, creating jobs and advancing sustainable economic growth.
A significant share of the financing has been earmarked for businesses that often face greater barriers to funding. Around 35% of the facility will support women and youth-led enterprises, while 30% will finance eligible green investments, enabling businesses to invest in climate-smart technologies and adopt more sustainable operations.
Speaking during the signing ceremony, EBRD Managing Director for Sub-Saharan Africa Dr Heike Harmgart said the partnership reflects the institution’s commitment to supporting 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. 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.”
Beyond the financing, EBRD will provide technical assistance to KCB Bank to strengthen its green lending capabilities. The support will include specialised training, advisory services and technical expertise to help the bank expand financing for environmentally sustainable projects.
According to the Managing Director of KCB Bank Kenya Annastacia Kimtai, the new partnership will help the bank provide greater financial assistance to small businesses, as well as accelerate investments in sustainable industries.
“This facility will allow us to boost our efforts of providing affordable lending to SMEs, especially those that have encountered challenges of accessing financing. Our commitment to sustainable financing will be enhanced as we continue making investments in sustainable energy, climate-smart agriculture and other green projects that not only align with Kenya’s climate objectives but are also economically profitable.”
This new funding will add to the already existing efforts by KCB in supporting the growth of the MSME industry in Kenya. By using the bank’s FLME proposition, more than KSh156 billion has been loaned to women entrepreneurs. KCB has provided KSh48.8 billion in financing in green sectors such as renewable energy and others.
Up to the end of March 2026, KCB has provided KSh13 billion in new loans to micro, small and medium enterprises.
