Women-owned and led small and medium-sized enterprises (SMEs) will benefit from a $100 million Tier 2 capital facility secured by KCB Bank Kenya from British International Investment (BII), the UK’s development finance institution and impact investor.
Announced recently, this investment aims to boost KCB’s lending capacity for climate-related projects and women-led SMEs.
The funding will bolster KCB Bank’s financial position and enable it to finance local companies developing innovative climate technologies.
These technologies include renewable energy, green mobility, and sustainable value chains within the agricultural sector.
This aligns with KCB’s commitment to UN Sustainable Development Goals 5 (Gender Equality), 8 (Decent Work and Economic Growth), and 13 (Climate Action).
A key focus of this investment will be expanding financial access for women-owned and led SMEs, particularly those in the informal sector, through KCB’s Female-Led and Made Enterprises (FLME) proposition.
The FLME program seeks to overcome systemic challenges, discriminatory policies, and cultural barriers that limit women’s access to credit, which are significant obstacles for female entrepreneurs and business growth.
This investment meets the criteria for the 2X Challenge, of which BII is a founding member.
This qualification stems from KCB Bank’s dedication to supporting gender diversity through its investments, as well as promoting gender diversity within its own organization at the board level and across its workforce.
“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,” said Chris Chijiutomi, MD and Head of Africa at BII.
“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.”
KCB Bank Kenya Managing Director, Annastacia Kimtai commented: “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. We want to scale the support to stimulate sustainable economic growth.”
Economic Counsellor & Head of Prosperity and Climate at the British High Commission Nairobi, Daniel Wilcox added: “The UK is a long-term partner providing long-term investment in Kenya, as we work together to deliver mutual economic growth for both our nations. Kenya has a vibrant and entrepreneurial business environment, but access to finance continues to be a constraint. We look forward to working closely with KCB to deliver the needed change and impact for businesses.”
This collaboration reinforces KCB’s investments under the FLME platform.
KCB has allocated KSh 50 billion annually to support women-owned and operated businesses through FLME.
Since the initiative’s launch in 2022, KCB has disbursed at least KSh 150 billion to customers under the FLME program, fostering entrepreneurship and generating meaningful job opportunities.
