EBRD supports small businesses in Kenya
The European Bank for Reconstruction and Development (EBRD) is extending a US$ 100 million loan (approximately €85 million) to KCB Bank Kenya Limited to expand access to finance for micro, small and medium-sized enterprises (MSMEs) in Kenya, according to a press release published on 29 July 2026. The credit line aims to reach an underserved segment of the market, with 35 percent earmarked for women- and youth-led businesses and 30 percent dedicated to green investments. This transaction marks the EBRD’s first investment in Kenya’s financial sector. It is designed to strengthen job creation and economic growth. The facility also promotes inclusive and sustainable lending priorities.
The EBRD began investing in Kenya in 2025, focusing on private-sector development, financial inclusion, sustainable infrastructure and the green transition. MSMEs play an important role in economic growth and job creation across the country. Many of these businesses have traditionally faced barriers in accessing credit. The new facility aligns with the EBRD’s broader strategy in Sub-Saharan Africa. It reflects the bank’s emphasis on greener economies and inclusive finance.
Under the agreement, KCB Bank will channel the funds to eligible MSMEs, with defined allocations for women- and youth-led enterprises. A share of 30 percent will finance eligible green investments. In addition, KCB Bank will receive technical assistance, including training, advisory support and technical expertise, to strengthen its green lending capabilities. The package combines financing with capacity building. Together, these components aim to broaden the reach of affordable credit.
Heike Harmgart, the EBRD’s Managing Director for Sub-Saharan Africa, said: “This is our first investment in Kenya’s financial sector. 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.”
The statement underlined the facility’s focus on inclusion and the green transition. It also highlighted the strategic value of the partnership.
Annastacia Kimtai, Managing Director of KCB Bank Kenya, said the facility will strengthen the bank’s capacity to extend affordable financing to SMEs, particularly those who have traditionally faced barriers in accessing credit. She added that KCB Bank remains committed to sustainable finance by increasing investments in renewable energy, climate-smart agriculture and other green projects. These investments are expected to contribute to Kenya’s climate ambitions while creating long-term economic value. The partnership reinforces the EBRD’s engagement in Kenya since 2025. It also advances shared goals in financial inclusion and green growth.