KCB Bank Sets a Third of New $100m EBRD Facility for Green Lending
KCB Bank Kenya has secured a $100 million (KShs12.9 billion) financing facility from the European Bank for Reconstruction and Development, with 30 per cent of the funding set aside for green investments.
The facility, signed on July 28, is aimed at expanding access to credit for micro, small and medium enterprises while pushing more of them toward climate-smart technologies and sustainable practices.
Under the framework, 35 per cent of the facility will go to women and youth-led enterprises, alongside the green allocation, a structure the two institutions say ties SME lending directly to climate outcomes rather than treating them separately.
The deal marks EBRD’s first investment in Kenya’s financial sector. Speaking at the signing, the Bank’s Managing Director for Sub-Saharan Africa, Dr Heike Harmgart, said the facility was designed to support businesses positioned to drive both economic and environmental gains.
“By partnering with KCB Bank, we are helping to channel much-needed financing to MSMEs, the engines of job creation and economic growth,” Harmgart said. “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.”
EBRD will also provide technical assistance to KCB Bank, including specialised training and advisory services, to strengthen the lender’s capacity to assess and support green investments.
KCB Bank Kenya Managing Director Annastacia Kimtai said the facility builds on the bank’s existing sustainable finance commitments. “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,” Kimtai said.
The facility adds to a lending record KCB has built over several years. The bank has disbursed more than KShs48.8 billion in green financing loans supporting renewable energy and climate-smart investments, and over KShs156 billion to women entrepreneurs through its Female-Led & Made Enterprises (FLME) proposition.
By the end of March 2026, the bank had extended KShs13 billion in new credit to micro, small and medium enterprises.
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