British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has announced a $100 million Tier 2 capital facility for KCB Bank Kenya. This funding aims to enhance the bank’s lending capacity, focusing on climate-related projects and women-led small and medium-sized enterprises (SMEs).
The investment will bolster KCB Bank’s balance sheet, enabling it to fund local businesses advancing innovative climate technologies such as renewable energy, green mobility, and sustainable agricultural value chains. This initiative aligns with the bank’s commitment to the United Nations Sustainable Development Goals (SDGs), specifically Goal 5 (Gender Equality), Goal 8 (Decent Work and Economic Growth), and Goal 13 (Climate Action).
The facility will play a crucial role in expanding finance to women-owned and led SMEs, particularly within the informal sector, through the Female-Led and Made Enterprises (FLME) proposition. This initiative is designed to tackle systemic challenges, including discriminatory policies and cultural barriers, that restrict women’s access to credit—key obstacles for aspiring female entrepreneurs and business owners.
Chris Chijiutomi, Managing Director and Head of Africa at BII, highlighted the significance of this investment, stating: “This facility is a testament to BII’s commitment to strengthening Africa’s banking sector through partnerships with financial institutions that drive inclusive and sustainable business growth. Kenya is a key market for BII, and by providing supplementary capital to KCB Bank Kenya, we are supporting the scale-up of climate investments and creating greater opportunities for women-owned businesses, which are critical to Kenya’s economic development and green growth strategy.”
The investment qualifies for the 2X Challenge—an initiative BII co-founded—due to KCB Bank’s dedication to gender diversity within its investments and governance structures, including its board and workforce.
KCB Group CEO Paul Russo welcomed the partnership, stating: “This collaboration is a significant step towards expanding our lending to climate-aligned businesses and women-led enterprises while strengthening our capital base. We are committed to scaling support that fosters sustainable economic growth.”
This partnership reinforces KCB’s dedication to women-led enterprises through its FLME platform, under which the bank has allocated KShs 50 billion annually to support women-owned and operated businesses. Since its launch in 2022, KCB has provided at least KShs 150 billion in funding, driving entrepreneurship and creating employment opportunities.
Daniel Wilcox, Economic Counsellor & Head of Prosperity and Climate at the British High Commission in Nairobi, underscored the UK’s commitment to long-term investment in Kenya. He stated: “The UK is a long-term partner providing long-term investment in Kenya, working together to achieve mutual economic growth. Kenya has a dynamic and entrepreneurial business environment, yet access to finance remains a challenge. We look forward to collaborating with KCB to drive meaningful change and impact for businesses.”
This strategic investment further cements the UK’s role in supporting Kenya’s financial sector, accelerating inclusive economic development, and fostering sustainable growth across key industries.
