Kenya Commercial Bank Group (KCB), East Africa’s largest financial services provider, has secured a $100 million financing facility from the European Bank for Reconstruction and Development (EBRD) to expand lending to small businesses and green projects in Kenya.

The facility comes as Kenyan micro, small and medium-sized enterprises (MSMEs) continue to face tight access to affordable financing, limiting their ability to expand, invest and create jobs.

KCB targets women and youth businesses

Under the agreement, 35% of the EBRD funding will go to women- and youth-led enterprises, while 30% will finance eligible green investments, including climate-smart technologies and environmentally sustainable business projects.

The facility builds on KCB’s existing lending to underserved businesses. The bank says it has provided more than KSh156 billion ($1.2 billion) to women entrepreneurs through its Female-Led & Made Enterprises program, while green financing has reached KSh48.8 billion ($377 million) for renewable energy and other climate-related investments.

The EBRD said the transaction is its first financing for Kenya’s financial sector and is designed to strengthen private-sector growth by widening access to capital.

Heike Harmgart, EBRD managing director for Sub-Saharan Africa, said the partnership would help direct financing toward MSMEs while supporting Kenya’s shift toward a greener economy. She highlighted women and young entrepreneurs as key contributors to job creation and long-term economic growth.

Green finance gets technical support

Beyond the financing, the EBRD will provide KCB Bank Kenya with technical assistance to expand its green lending portfolio. The support will include training, advisory services and technical expertise.

Annastacia Kimtai, managing director of KCB Bank Kenya, said the facility would strengthen the bank’s capacity to provide affordable credit to businesses that have traditionally struggled to secure financing.

KCB plans to continue backing renewable energy, climate-smart agriculture and other environmentally sustainable investments aligned with Kenya’s climate goals.

KCB’s East African network

KCB Group, established in Kenya in 1896, provides retail banking, corporate banking and mortgage services across East Africa. Its network covers Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi and the Democratic Republic of Congo, with a representative office in Ethiopia.

The group operates nearly 600 branches and more than 1,300 ATMs, supported by tens of thousands of agents and merchants across its markets.

The EBRD facility positions KCB to deepen SME financing while expanding access to green capital for businesses and projects across Kenya.