By The Weekly Vision Business Desk
KCB Bank Kenya has entered into a landmark partnership with the European Bank for Reconstruction and Development (EBRD), securing a US$100 million (KShs. 12.9 billion) financing facility to expand credit access for micro, small, and medium-sized enterprises (MSMEs) across the country.
The agreement, signed on 28th July 2026, marks the EBRD’s first investment in Kenya’s financial sector since the development bank began operations in the country last year, and underscores KCB’s ongoing commitment to entrepreneurship, job creation and sustainable economic growth. Under the facility, 35 per cent of the funds will be allocated specifically to women- and youth-led enterprises, while 30 per cent will support eligible green investments, enabling businesses to adopt climate-smart technologies and more sustainable practices.
Speaking at the signing ceremony, Dr Heike Harmgart, EBRD’s Managing Director for Sub-Saharan Africa, said the facility represented the Bank’s 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, adding that the facility would support Kenya’s transition to a greener economy while widening opportunities for women and young entrepreneurs.
Beyond the financing itself, the EBRD will provide technical assistance to KCB Bank Kenya to strengthen its green lending capabilities, including specialised training, advisory services and technical expertise to enhance the Bank’s support for environmentally sustainable investments.
Annastacia Kimtai, Managing Director of KCB Bank Kenya, welcomed the partnership, noting its potential to address longstanding barriers faced by smaller businesses in accessing credit. “This facility will strengthen our capacity to extend affordable financing to SMEs, particularly those who have traditionally faced barriers in accessing credit,” she said. “We remain committed to sustainable finance by increasing investments in renewable energy, climate-smart agriculture and other green projects that contribute to Kenya’s climate ambitions while creating long-term economic value.”
The facility builds on a broader track record: KCB Bank Kenya has disbursed more than KShs. 156 billion to women entrepreneurs through its Female-Led & Made Enterprises (FLME) proposition, while its green financing portfolio has surpassed KShs. 48.8 billion, supporting renewable energy and other climate-smart investments. In the first quarter of 2026 alone, the Bank extended KShs. 13 billion in new credit to MSMEs. Its loan book stood at KShs. 1.17 trillion as at the end of March 2026, up from KShs. 1 trillion a year earlier, while borrowings from development partners, including the EBRD, the European Investment Bank and Proparco, rose to KShs. 72.4 billion from KShs. 67.5 billion over the same period.
The deal is expected to play a significant role in supporting Kenya’s private sector at a time when access to credit remains a key constraint for many MSMEs, which account for the bulk of private-sector employment but have long struggled to secure formal financing due to limited collateral and high perceived risk. By focusing on women, youth and green initiatives, the facility aligns with both national development priorities and global sustainability goals.
