KCB Bank Secures $100 Million Tier 2 capital facility from British International Investment (BII), the UK’s development finance institution and impact investor. This strategic partnership aims to bolster KCB’s lending capacity towards climate-related projects and women-led small and medium-sized enterprises (SMEs) in Kenya.
The infusion of capital is set to strengthen KCB’s balance sheet, enabling the bank to support local companies advancing innovative climate technologies. Targeted sectors include renewable energy, green mobility, and sustainable agricultural value chains. This initiative aligns with KCB’s commitment to the United Nations Sustainable Development Goals (SDGs), specifically:
SDG 5: Gender Equality
SDG 8: Decent Work and Economic Growth
SDG 13: Climate Action
A significant portion of the funding will be allocated to women-owned and women-led small and medium-sized enterprises (SMEs), reinforcing the commitment to SDG 5: Gender Equality.
With Kenya’s economy heavily reliant on SMEs, the investment aligns with SDG 8: Decent Work and Economic Growth. KCB will channel the funds into businesses that drive employment opportunities, particularly for young people and marginalized communities.
The deal is set to bolster KCB’s financing for climate-resilient projects, supporting SDG 13: Climate Action. The funds will be directed towards sectors such as renewable energy, green mobility, and sustainable agriculture.
KCB Group CEO Paul Russo 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.”
By channeling funds into these areas, KCB aims to contribute significantly to Kenya’s green growth and sustainable development.
A substantial portion of the facility is earmarked for women-owned and led SMEs, particularly those operating in the informal sector. Through its Female-Led and Made Enterprises (FLME) program, KCB seeks to dismantle systemic barriers such as discriminatory policies and cultural norms that hinder women’s access to credit. This initiative is designed to foster entrepreneurship and facilitate business growth among women, thereby promoting economic inclusivity.
Chris Chijiutomi, Managing Director and Head of Africa at BII, emphasized the significance of this collaboration:
“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.”
This investment qualifies under the 2X Challenge, an initiative co-founded by BII to mobilize capital for projects that empower women. KCB’s dedication to gender diversity is evident not only through its external investments but also within its internal corporate structure, including board representation and workforce composition.
Daniel Wilcox, Economic Counsellor and Head of Prosperity and Climate at the British High Commission in Nairobi, underscored the broader economic implications:
“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 ongoing efforts to support women entrepreneurs through the FLME platform, to which the bank has allocated KShs. 50 billion annually. Since its launch in 2022, the initiative has disbursed approximately KShs. 150 billion, fostering entrepreneurship and generating meaningful employment opportunities across Kenya.
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