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Home » Investments » KCB Secures KSh12.9 Billion to Boost Loans for Kenyan SMEs

KCB Secures KSh12.9 Billion to Boost Loans for Kenyan SMEs

by Queen Amber
32 minutes ago
in Investments
Reading Time: 2 mins read
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KCB Group CEO Paul Russo makes his remarks during the announcement of the bank's 2024 Q1 financial results where it reclaimed its position as East Africa's most profitable bank after posting a 69% Profit After Tax to Kshs. 16.5 Billion /Agency

KCB Group CEO Paul Russo makes his remarks during the announcement of the bank's 2024 Q1 financial results where it reclaimed its position as East Africa's most profitable bank after posting a 69% Profit After Tax to Kshs. 16.5 Billion /Agency

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KCB Bank Kenya has secured a US$100 million, equivalent to about KSh12.9 billion, financing facility to expand access to credit for micro, small and medium-sized enterprises across the country.

The funding, provided by the European Bank for Reconstruction and Development (EBRD), is expected to support entrepreneurship, job creation and sustainable economic growth in Kenya. 

Under the agreement, 35 per cent of the money will be set aside for businesses owned or led by women and young people.

Another 30 per cent will finance qualifying green investments, including renewable energy, climate-smart agriculture and technologies that help businesses reduce their impact on the environment.

EBRD Managing Director for Sub-Saharan Africa Dr Heike Harmgart said the transaction marks the institution’s first investment in Kenya’s financial 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,” she said.

She added that the facility would support Kenya’s shift towards a greener economy while opening more opportunities for women and young entrepreneurs.

Besides providing the financing, EBRD will offer technical assistance, specialised training and advisory services to strengthen KCB’s capacity to provide green loans.

KCB Bank Kenya Managing Director Annastacia Kimtai said the funding would enable the lender to offer affordable credit to enterprises that have traditionally struggled to access financing.

“This facility will strengthen our capacity to extend affordable financing to SMEs, particularly those who have traditionally faced barriers in accessing credit,” Kimtai said.

She said KCB would continue increasing investments in renewable energy, climate-smart agriculture and other projects that support Kenya’s climate goals while creating long-term economic value.

KCB said it has previously disbursed more than KSh156 billion to women entrepreneurs through its Female-Led and Made Enterprises programme.

The lender has also issued more than KSh48.8 billion in green financing for renewable energy and other environmentally sustainable projects.

By the end of March 2026, KCB had extended KSh13 billion in new credit to MSMEs, highlighting the growing demand for financing among Kenyan businesses.

Tags: European Bank for Reconstruction and DevelopmentKCBSMEs
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