KCB Bank Kenya has secured a $100 million financing deal from British International Investment (BII) to enhance lending for climate-related projects and women-led businesses.
The announcement was made on Monday. This funding is structured as Tier 2 capital, aiming to strengthen KCB’s financial position while scaling investments in sustainable businesses.
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Empowering women-led enterprises
Most financing will be directed towards KCB’s Female-Led and Made Enterprises (FLME) initiative. This program focuses on empowering women entrepreneurs, particularly in the informal sector, by addressing systemic financial barriers, discriminatory policies, and cultural challenges limiting women’s credit access.
As Paul Russo, KCB Group CEO, noted, “KCB has committed KSh 50 billion annually to supporting women-owned businesses. To date, we have extended at least KSh 150 billion under this initiative since its launch in 2022, fostering entrepreneurship and creating meaningful job opportunities.”
The funding aligns with the 2X Challenge, a global initiative promoting gender-inclusive investments. BII, a founding member, has committed at least 30 percent of its new investments to climate finance between 2022 and 2026.
Diana Layfield, Chair of BII, emphasised, “This investment aligns with our mission to drive inclusive economic growth and climate resilience in Kenya. By working with KCB, we aim to create tangible opportunities for women entrepreneurs while fostering green financing.”
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Driving climate finance in Kenya
The investment will also expand financing for climate-related projects, including adopting green technologies and infrastructure development for sustainable business operations.
BII’s Managing Director and Head of Africa, Chris Chijiutomi, stated, “By providing supplementary capital to KCB, we are helping scale investments in climate projects and increasing opportunities for women-led businesses—both critical to Kenya’s economic development.”
The funding supports businesses developing renewable energy solutions, green mobility projects, and sustainable agricultural value chains, aligning with multiple UN Sustainable Development Goals.
Daniel Wilcox, Economic Counsellor & Head of Prosperity and Climate at the British High Commission Nairobi, highlighted the UK’s commitment to Kenya’s economic development, noting, “Kenya has a vibrant and entrepreneurial business environment, but access to finance remains a constraint. We look forward to working with KCB to deliver the needed change and impact for businesses.”
This partnership reflects a strategic collaboration between the UK and Kenya, enhancing financial inclusion and sustainability in Africa’s largest economy.