Kenya Development Corporation (KDC) hosted senior officials from the World Bank for a high-level progress review of Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, which focuses on mobilizing private capital and strengthening climate resilience among small and medium-sized enterprises (SMEs) as well as the SAFER Project.
KJET’s Project Development Objective is to increase private sector investment, access to markets, and sustainable finance to create and improve jobs, while advancing Kenya’s broader green growth and climate resilience agenda. The engagement reviewed progress on the establishment of the Green Investment Fund (GIF) and provided a platform for strategic dialogue between the World Bank and KDC on implementation readiness, governance arrangements, and scaling potential.
During the discussions, the World Bank acknowledged the Government of Kenya’s leadership, with KDC as the implementing institution, in advancing a blended finance platform designed to de-risk private investment and expand access to patient capital for SMEs adopting sustainable and climate-aligned technologies. The Bank reaffirmed its support to the initiative through KJET, underscoring the importance of combining public resources, technical assistance, and private capital to achieve impact at scale.
The engagement highlighted significant progress in operationalizing the Green Investment Fund, with the World Bank channeling USD 43 million to KDC. The fund will support investments in priority green growth sectors including electric mobility and transport, energy-efficient and green buildings, sustainable agriculture, and waste management solutions. These sectors were recognized as offering strong potential for near- and medium-term deployment, supported by policy direction, market demand, and improving enabling conditions.
Discussions further emphasized the importance of strong governance and fund manager independence. The World Bank noted that the selection of an independent fund manager through a competitive process now at an advanced stage is a critical milestone to safeguard commercial discipline, manage conflicts of interest, and ensure alignment with the fund’s development and financial objectives.
In addition to KJET, the engagement reviewed progress under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, which continues to deliver strong socio-economic impact across the MSME sector. To date, SAFER has supported over 37,000 enterprises, 38 percent of which are women-owned, and enabled the creation of more than 25,000 jobs. Through the programme, SACCOs have rolled out tailored SME financing products, including a digital lending window designed to reach micro-businesses, accelerate loan approvals, and significantly expand access to finance.
Ms. Norah Ratemo, Director General KDC, said: “Through KJET and SAFER, KDC is delivering tangible results by crowding in private capital, strengthening financial intermediaries, and expanding access to patient and affordable finance for SMEs. The progress made on the Green Investment Fund marks a critical step towards scaling climate-smart investments that create jobs, enhance resilience, and support sustainable enterprise growth.”
The partnership has also strengthened environmental, social, and governance (ESG) integration across SME financing. Under both KJET and SAFER, KDC has enhanced its Environmental and Social Management Systems (ESMS) to ensure compliance with national regulations and international good practice. Participating Financial Institutions, including SACCOs, have been supported to embed ESG screening, risk management, and reporting into their lending processes, promoting responsible financing while safeguarding communities, livelihoods, and the environment.
“The progress under KJET demonstrates how well-structured blended finance platforms can unlock private investment, support job creation, and accelerate climate-aligned growth. The Green Investment Fund framework has strong potential as a replicable modelcapable of meeting SMEs’ demand for patient capital while advancing climate adaptation, mitigation, and private sector participation, “said Mr. Hassan Zaman, World Bank Regional Director.
Looking ahead, discussions also explored opportunities for additional financing to scale SAFER interventions and expand support for medium-sized enterprises. Strong demand from SACCOs and other financial institutions, coupled with the growing role of digital and tailored financial products, was noted as a key opportunity to deepen financial inclusion and enable firms to grow and move up the value chain.
The continued collaboration between the Government of Kenya, KDC, and the World Bank ensures that Kenya’s micro, small, and medium enterprises have access to the finance, tools, and support needed to drive inclusive growth, create jobs, and build resilience in a changing climate.
