KCB Bank Kenya has received Sh12.9 billion financing from the European Bank for Reconstruction and Development (EBRD) for onward lending to women and youth-led business and green enterprises.
The lender, part of KCB Group, said 35 percent of the facility will be directed towards women and youth-led enterprises, while 30 percent will finance eligible green investments, enabling businesses to adopt climate-smart technologies and sustainable business practices.
This is the first investment made in the country’s banking sector by the London-based EBRD since its formation in 1991 and with a membership of 77 countries.
“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 micro, small and medium enterprises (MSMEs), the engines of job creation and economic growth,’ said EBRD’s managing director for sub-Saharan Africa, Dr Heike Harmgart
‘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 added.
The loan is the latest to be received by KCB targeting women and youth who are considered disadvantaged in accessing credit. Other international lenders that have partnered with the bank include British International Investment (BII) with a Sh12.9b billion facility last year and European Investment Bank (EIB) with a Sh32 Billion facility in 2024.
Lack of access to collateral is cited as the main hindrance to women and youth getting credit from banks. Most assets acceptable as loan collateral are registered under men. The government has in the past made efforts to address the same using special funds as the Youth Enterprise Development Fund, Women Enterprise Fund and Hustler Fund but with limited success.
‘This facility will strengthen our capacity to extend affordable financing to SMEs particularly those who have traditionally faced barriers in accessing credit,’ said KCB Bank Kenya Managing Director, Annastacia Kimtai.
KCB Kenya had a loan book of Sh1.17 trillion as at the end of March this year compared to Sh1 trillion a year earlier.
In the first quarter of 2026, the bank extended Sh13 billion in new credit to micro, small and medium enterprises.
Its borrowings which include from development partners such as EBRD, European Investment Bank and Proparco were at Sh72.4 billion as at end of March up from Sh67.5 billion 12 months earlier.
Loans from international development partners are usually better priced than local funds allowing banks that have received the funds to lend at a lower interest rate to the targeted group.
Climate-friendly projects have also received heavy backing from international lenders in a bid to ensure greener economies that will protect the environment.
In addition to the financing, EBRD will provide technical assistance to KCB Bank to strengthen its green lending capabilities through specialised training, advisory services and technical expertise, enhancing the bank’s capacity to support environmentally sustainable investments.