The European Bank for Reconstruction and Development (EBRD) has provided KCB Bank with a $100 million (Sh13 billion) financing facility to accelerate sustainable lending in Kenya. The agreement earmarks 30% of the funding for green investments, including renewable energy, climate-smart agriculture and environmentally sustainable businesses, while 35% will support women- and youth-led enterprises. The facility also includes technical assistance to strengthen KCB’s green lending capabilities and marks EBRD’s first financing in Kenya’s banking sector.

Key Overview

• EBRD has provided KCB with a $100 million (Sh13 billion) financing facility.
• 30% of the funding will finance eligible green investments.
• The facility will support renewable energy, climate-smart agriculture and sustainable businesses.
• EBRD will provide technical assistance to strengthen KCB’s green lending portfolio.
• 35% of the financing will be allocated to women- and youth-led enterprises.

EBRD Commits $100 Million to Kenya’s Green Finance

The European Bank for Reconstruction and Development (EBRD) has committed a $100 million (Sh13 billion) financing facility to KCB Bank, with a significant portion of the funding dedicated to supporting Kenya’s transition to a greener economy.

Under the agreement, 30 percent will finance eligible green investments, including renewable energy, climate-smart agriculture and environmentally sustainable business projects. The investment marks EBRD’s first financing in Kenya’s banking sector and is intended to expand access to finance for micro, small and medium-sized enterprises (MSMEs) while accelerating sustainable investment across the country.

In addition to supporting climate-focused projects, the financing also aims to strengthen KCB’s capacity to provide affordable lending to businesses that contribute to Kenya’s environmental and economic development goals.

Green Investments Take Centre Stage

A key feature of the financing facility is its emphasis on climate-focused lending.

According to the agreement, 30% of the funding has been earmarked for green investments, supporting businesses that adopt climate-smart technologies and environmentally sustainable business practices.

The financing will help expand lending for renewable energy, climate-smart agriculture, and other environmentally sustainable investments that contribute to Kenya’s climate ambitions.

The move comes as Kenya’s banking sector increasingly aligns its lending with environmental, social and governance (ESG) principles amid growing demand for climate finance from businesses seeking to reduce energy costs, improve resilience and meet sustainability standards required by export markets and investors.

Technical Support to Expand Green Lending

Beyond the financing itself, the EBRD will provide KCB with technical assistance designed to strengthen the bank’s green lending programme.

The support will include specialised training, advisory services and technical expertise, enabling KCB to expand financing for renewable energy, climate-smart agriculture and other environmentally sustainable projects.

According to the EBRD, combining financing with technical support will help strengthen the bank’s ability to deliver sustainable finance while supporting the growth of businesses investing in greener technologies and climate-resilient operations.

EBRD Sees Green Finance as a Growth Opportunity

EBRD Managing Director for Sub-Saharan Africa, Dr. Heike Harmgart, said the financing is intended to unlock the growth potential of Kenya’s private sector by increasing access to finance for MSMEs, which account for much of the country’s employment and economic activity.

She said the facility would also contribute to Kenya’s transition to a greener economy.

“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.”

Dr. Harmgart added that the partnership will help channel much-needed financing to MSMEs while supporting investments that contribute to sustainable economic growth.

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KCB Strengthens Sustainable Finance Portfolio

KCB Bank said the facility will enhance its ability to extend affordable financing to SMEs, particularly businesses that have traditionally faced barriers to accessing credit.

KCB Kenya Managing Director Annastacia Kimtai said the bank remains committed to 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.

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

According to KCB, the new financing builds on its expanding sustainability lending portfolio and strengthens its position in Kenya’s growing sustainable finance market.

Building on Existing Green Investments

KCB said it has already disbursed Sh48.8 billion in green financing to support renewable energy and other climate-related investments.

The bank has also advanced more than Sh156 billion to women entrepreneurs through its Female-Led & Made Enterprises (FLME) programme.

By the end of March 2026, KCB had extended Sh13 billion in new credit to micro, small and medium-sized enterprises, reflecting continued demand for business financing.

The latest EBRD facility builds on these investments by increasing the bank’s capacity to finance environmentally sustainable projects while supporting broader private sector growth.

Women and Youth Also Benefit

Alongside its climate investment focus, the financing facility also promotes inclusive business growth.

Under the agreement, 35 percent of the funding will be directed to women and youth-led enterprises, expanding access to finance for entrepreneurs who have historically faced challenges obtaining credit.

The EBRD said women and young entrepreneurs are central to Kenya’s long-term economic growth and that improving access to finance will support business development and job creation.

The financing is expected to widen access to capital for women entrepreneurs, young business owners and firms investing in Kenya’s transition to a low-carbon economy.

Outlook

The EBRD’s $100 million financing facility places climate investment at the centre of its first partnership with Kenya’s banking sector. By allocating 30% of the funding to green investments, supporting renewable energy, climate-smart agriculture and environmentally sustainable businesses, and providing technical assistance to strengthen green lending, the initiative aims to expand sustainable finance in Kenya. The additional allocation for women- and youth-led enterprises further broadens the facility’s impact while supporting inclusive private sector growth and Kenya’s transition to a greener economy.

FAQs

1. How much financing did the EBRD provide to KCB?

The EBRD provided KCB Bank with a $100 million (Sh13 billion) financing facility.

2. How much of the funding is dedicated to green investments?

Thirty percent of the facility has been earmarked for eligible green investments, including renewable energy, climate-smart agriculture and environmentally sustainable businesses.

3. What additional support will the EBRD provide?

The EBRD will provide specialised training, advisory services and technical expertise to help KCB expand its green lending portfolio.

4. How much has KCB already invested in green finance?

According to the bank, KCB has already disbursed more than Sh48.8 billion in green financing for renewable energy and other climate-related investments.

Sources: The Star, allAfrica, Capital FM, Citizen Digital

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