Published on February 24, 2025 by Agencies for Kenya Online News
Last Updated on 1 year by Agencies for Kenya Online News
British International Investment (BII), the UK’s development finance institution and impact investor, has announced the provision of a $100 million Tier 2 capital facility to KCB Bank Kenya to increase its lending capacity to climate-related projects and women-led small and medium-sized enterprises (SMEs).
The funding will strengthen KCB Bank’s balance sheet and fund local companies scaling innovative climate technologies, including renewable energy, green mobility, and firms creating sustainable value chains in the agriculture sector. It also aligns with the bank’s adopted UN Sustainable Development Goals 5 (Gender Equality), 8
(Decent Work and Economic Growth), and 13 (Climate Action).
The new facility will support the Bank to extend finance to women-owned and led SMEs, particularly those in the informal sector, through the Female-Led and Made Enterprises (FLME) proposition. This seeks to address systemic challenges, discriminatory policies, and cultural barriers restricting women’s access to credit, which are key hurdles for those aspiring to entrepreneurship and business growth.
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.”
The investment qualifies for the 2X Challenge, of which BII is a founding member, due to the Bank’s commitment to support gender diversity through its investments as well as within its business at the board level and across its workforce.
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.”
This collaboration strengthens KCB investments under the FLME platform, to which KCB has dedicated KShs. 50 billion annually to support women-owned and operated businesses. To date, the Bank has extended at least KShs.150 billion to customers under the initiative launched in 2022, fostering entrepreneurship and creating
meaningful job opportunities.
Daniel Wilcox, Economic Counsellor & Head of Prosperity and Climate at the British High Commission Nairobi 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.”
