EBRD Completes Ksh 6.4 Billion Deal With Co-operative Bank

The European Bank for Reconstruction and Development (EBRD) and the Co-operative Bank of Kenya have completed a US$50 million (€43.1 million) cross-currency swap to expand access to financing in Kenyan shillings.

The transaction is the first of its kind to use the Kenya Shilling Overnight Interbank Average (KESONIA), Kenya’s new reference rate for financial transactions.

It also marks the first use of part of a broader US$100 million (€86.2 million) facility agreed between the two institutions. The swap will strengthen the EBRD’s ability to raise and manage funding in Kenyan shillings.

This will allow the bank to provide more financing in local currency and help businesses avoid unnecessary foreign-exchange risks when their income is mainly in Kenyan shillings.

By using KESONIA in a live market transaction, the EBRD and Co-operative Bank are demonstrating how the new benchmark can work in practice.

The move is expected to build confidence in KESONIA, encourage its use and support the development of Kenya’s local financial markets.

EBRD Highlights Market Milestone

Abdessamad Abouti, Regional Head of Local-Currency Portfolio Management at the EBRD, described the transaction as an important milestone for Kenya’s financial markets.

“We have worked closely with local authorities and market participants to support the development of KESONIA, and this swap shows how reforms can move from design to implementation, reflecting the EBRD’s longstanding commitment to developing local capital markets.”

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Co-operative Bank Welcomes Transaction

Mutahе Karuoro, Treasurer at the Co-operative Bank of Kenya, said the transaction was a significant moment for the bank and the country.

“Bringing KESONIA to life has been a collective journey- one built on trust, technical rigour, and a shared vision for our financial markets.”

Karuoro said the transaction would support greater liquidity, better price discovery and stronger participation from local and international investors.

“This swap is a first, but it will not be the last. It opens the door for greater liquidity, better price discovery, and stronger participation from local and international investors.”

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KESONIA Expected to Support Financial Markets

KESONIA-linked transactions are expected to play a growing role as Kenya moves towards internationally recognised standards.

The transactions are expected to support transparent pricing, improve risk management practices and attract greater participation from domestic and international investors.

The EBRD began investing in Kenya in 2025, focusing on private-sector development, financial inclusion, sustainable infrastructure and the green transition.

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