KCB Bank Kenya has signed a US$100 million financing facility, roughly KES 12.9 billion, with the European Bank for Reconstruction and Development to expand credit access for micro, small and medium enterprises.
The bank announced the deal this week, marking EBRD’s first investment in Kenya’s financial sector since the multilateral lender began operating in the country last year, according to reporting by The Standard.
Under the agreement, 35% of the facility will go to women and youth led enterprises, while 30% is reserved for eligible green investments that help businesses adopt climate smart technology and sustainable practices. EBRD will also provide technical assistance, including specialised training and advisory services, to strengthen KCB’s capacity to assess and grow green lending.
The Numbers
| Metric | Figure |
|---|---|
| New EBRD facility | US$100 million (KES 12.9 billion) |
| Share for women and youth led enterprises | 35% |
| Share for green investments | 30% |
| KCB disbursed to women entrepreneurs (FLME) | Over KES 156 billion |
| KCB green financing book | Over KES 48.8 billion |
| New MSME credit extended by March 2026 | KES 13 billion |
What Was Said
EBRD’s Managing Director for Sub-Saharan Africa, Dr Heike Harmgart, called the deal a way to channel financing toward MSMEs, describing them as the engines of job creation and economic growth. K
CB Bank Kenya Managing Director Annastacia Kimtai said the facility will strengthen the bank’s ability to extend affordable credit to SMEs that have traditionally faced barriers accessing finance.
Context
MSMEs account for the bulk of private sector employment in Kenya but have long struggled to secure formal credit due to limited collateral and high perceived risk, a gap regulators and development lenders have repeatedly flagged. The EBRD facility adds to KCB’s existing MSME financing activity, which includes a US$150 million package arranged with the International Finance Corporation and partners in 2021 and prior financing from the African Development Bank.
KCB Bank Kenya is the flagship subsidiary of KCB Group, East Africa’s largest financial services group, operating more than 220 branches, over 490 ATMs and more than 18,000 banking agents, and serving over 40 million customers across Kenya, Uganda, Tanzania, South Sudan, Burundi, Rwanda and the Democratic Republic of Congo.
