KCB Lands Ksh12.9 Billion Deal to Boost SME Lending in Kenya

KCB Bank has secured a Ksh 12.9 billion deal from the European Bank for Reconstruction and Development (EBRD) to boost small and medium enterprises lending in Kenya.

According to a statement by KCB, the funding is aimed at improving access to credit for businesses while supporting entrepreneurship, job creation and economic growth.

Under the agreement, 35% of the facility will be directed towards women- and youth-led enterprises while 30% will finance eligible green investments.

The funding is expected to enable businesses to adopt climate-smart technologies alongside sustainable business practices.

About The Partnership

Speaking during the signing ceremony, ERBD Managing Director for Sub-Saharan Africa Dr. Heike Harmgart said the partnership demonstrates their commitment to supporting Kenya’s private 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. We are particularly pleased that this facility will contribute to the transition to a greener economy and will expand opportunities for women and young entrepreneurs, whose success is critical to Kenya’s long-term prosperity.” He said.

Also Read: Gachagua, Duale Among Top Leaders Under NCIC Investigation Over Hate Speech

In addition to the financing, ERBD will provide technical assistance to KCB Bank in order to strengthen its green lending capabilities.

The support will comprise advisory services, specialised training and technical expertise to enhance KCB’s capacity to finance environmentally sustainable investments.

Affordable Financing

KCB Managing Director Annastacia Kimtai said the facility will strengthen the bank’s ability to be able to provide affordable financing to SMEs.

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

Also Read: Outrage as Man Filmed Giving Suspected Marijuana to Infant in Viral Video

Additionally, the agreement builds on KCB’s existing support for the MSME sector. The bank said it has disbursed more than Ksh156 million to women entrepreneurs and over Ksh 48.8 billion in green financing loans.

In addition, by the end of March 2026, KCB had extended KSh13 billion in new credit to micro, small and medium enterprises, highlighting its continued focus on addressing the financial needs of businesses.

Follow our WhatsApp channel for instant news updates