Kenya’s KCB bank is set to receive $100 million from British International Investment (BII), the United Kingdom’s development finance institution, strengthening its tier 2 capital.
By bolstering the bank’s supplementary capital, the investment will boost lending to climate-focused projects and women-led businesses in the country, BII said on Monday.
Beneficiaries of the credit facility will include local companies scaling innovative climate technologies, including renewable energy, green mobility, and firms creating sustainable value chains in the agriculture sector.
The funding will also target women-owned enterprises in the informal sector in an effort to address systemic challenges, discriminatory policies, and cultural barriers restricting women’s access to credit.
Since establishing the Female Made and Led Initiative in 2022, KCB has disbursed KShs.150 billion to businesses across Kenya and dedicates KShs 50 billion annually to support women-owned enterprises.
“The partnership marks a significant step towards the expansion of our lending to climate-aligned businesses and women-led enterprises while bolstering our capital position,” Annastacia Kimtai, KCB Bank Kenya Managing Director said.
Additionally, the new facility aligns with BII’s broader commitment to supporting Kenya green growth and economic expansion.
Chris Chijiutomi, MD and Head of Africa at BII, said: “This facility is a testament to BII’s commitment to strengthening Africa’s banking sector through partnerships with financial institutions that are driving inclusive and sustainable business growth. Kenya is an important market for BII.”
“By providing supplementary capital to KCB Bank Kenya, we are helping to scale investments in climate projects and create more opportunities for women-owned and led businesses – critical to Kenya’s economic development trajectory and a national plan for green growth” he added.
On his part, Daniel Wilcox, Economic Counsellor & Head of Prosperity and Climate at the British High Commission Nairobi emphasized that the UK remains a steadfast partner in Kenya’s economic progress, committed to long-term investment that fosters mutual benefits.
Highlighting Kenya’s vibrant and entrepreneurial business landscape, he noted that access to finance remains a big challenge.
