British International Investment (BII) has approved a USD100 million (Sh12.9 billion) Tier 2 capital facility to KCB Bank Kenya for lending to climate-linked projects and women-led small and medium enterprises (SMEs).

The financing by UK's development finance institution and impact investor will enable KCB to fund local firms to boost their innovative climate technologies in the agriculture sector.

The Tier 1 bank says the deal is also aligned with its adopted UN Sustainable Development Goals 5 (Gender Equality), 8 (Decent Work and Economic Growth), and 13 (Climate Action).

Through the Female-Led and Made Enterprises (FLME) proposition, the new facility will also enable KCB Bank Kenya to fund women-owned and led SMEs, mainly in the informal sector.

BII MD and Head of Africa Chris Chijiutomi said the facility is the institution’s pledge to partnering with African financial institutions to drive inclusive and sustainable growth.

Read More

  1. KCB pumps Sh209 million into 2025 WRC Safari Rally, sponsors four Kenyan drivers
  2. KCB Group post-tax profits soars by 49 per cent to Sh45.8 billion in Q3 2024
  3. KCB resumes dividend payouts as it posts 86 per cent profit surge to Sh29.9 billion in H1 2024

“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,” stated Chijiutomi.

The investment qualifies for the 2X Challenge, which BII is a founding member of, due to the Bank’s pledge to supporting gender diversity via investments and within its business.

“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,” said KCB Group CEO Paul Russo.

Under the FLME platform, KCB has dedicated Sh50 billion yearly to supporting women-owned and operated businesses and the BII agreement is set to strengthens its investments.

Since the launch of the initiative in 2022, the Kenyan Bank has extended at least Sh150 billion to customers in a bid to promote entrepreneurship and create meaningful jobs.

On his part, British High Commission Nairobi Economic Counsellor & Head of Prosperity and Climate Daniel Wilcox said UK will keep working with Kenya for mutual economic growth.

“Kenya has a vibrant and entrepreneurial business environment, but access to finance continues to be a constraint,” noted Wilcox.

He added: “We look forward to working closely with KCB to deliver the needed change and impact for businesses.”