European Bank Lends KCB $100 Million to Expand SME Financing in Kenya

The European Bank for Reconstruction and Development (EBRD) is lending KCB Bank Kenya Limited US$100 million, approximately €85 million, to improve access to finance for micro, small and medium-sized enterprises across Kenya.

The credit line, the EBRD’s first investment in Kenya’s financial sector, is intended to help KCB expand lending to underserved businesses that contribute to job creation and economic growth, according to a statement on Wednesday.

Under the agreement, 35 per cent of the financing will be channelled to women- and youth-led enterprises, while 30 per cent will be allocated to eligible green investments.

KCB will also receive technical assistance, including training, advisory support and specialist expertise, to strengthen its capacity to assess and finance environmentally sustainable projects.

“This is our first investment in Kenya’s financial sector,” said Heike Harmgart, the EBRD’s Managing Director for Sub-Saharan Africa.

“By partnering with KCB Bank, we are helping to channel much-needed financing to MSMEs, which are engines of job creation and economic growth. We are particularly pleased that this facility will support the transition to a greener economy and increase opportunities for women and young entrepreneurs, whose success is critical to Kenya’s long-term prosperity.”

KCB Bank Kenya Managing Director Annastacia Kimtai said the facility would enable the lender to provide more affordable financing to small and medium-sized businesses, particularly those that have traditionally struggled to access credit.

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

She added that KCB would continue increasing its investments in renewable energy, climate-smart agriculture and other green projects that support Kenya’s climate goals while generating long-term economic value.

The financing marks a significant step in the EBRD’s expansion into Kenya. The development bank began investing in the country in 2025, with a focus on private-sector development, financial inclusion, sustainable infrastructure and the transition to a greener economy.