Kenya Secures $100M Boost for Climate Action and Women's Businesses

KCB Bank Rises $100 Million Facility from BII to Finance Climate and Women-Owned Firms in Kenya

KCB Bank of Kenya has set up a $100 million Tier 2 capital facility with British International Investment (BII) to finance climate finance initiatives and women-owned small and medium-sized businesses (SMEs). The financing will strengthen the bank to lend and fund sustainable economic growth in Kenya, where finance is a significant obstacle.

The money will be used in renewable energy initiatives, green transport projects, and sustainable agricultural projects. These are the key sectors that are leading the nation's climate change action in line with the United Nations Sustainable Development Goals (SDGs) of climate action, gender equality, and economic development.

KCB's Female-Led and Made Enterprises (FLME) program, which provides women with access to capital, particularly from the informal economy, will benefit from this capital. The program has played a vital role in filling gaps that women have in obtaining credit from the financial sector, including policy barriers and cultural resistance. The new capital will ensure that these obstacles are removed, allowing women-owned businesses to thrive.

KCB Bank has a background of financing female-owned businesses. It has devoted KShs. 50 billion annually to female-owned businesses since 2022 and disbursed KShs. 150 billion in its FLME program. BII lending will further amplify efforts and assist economic empowerment of females in Kenya.

All these are in a bid to drive sustainable development in the country. With the world concentrating on green business, KCB's pledge to finance green transport and green energy initiatives is in tandem with global aspirations of sustainability. The partnership with BII is the foundation for expanding such initiatives because it injects much-needed capital into projects that will reduce the country's carbon footprint.

The additional funding also supports Kenya's national green growth strategy. Through investments in climate projects and women-owned enterprises, the program is set to drive massive positive change in the economic growth path of the country. The collaboration between KCB Bank and BII will create more opportunities for women entrepreneurs to expand, enabling them to successfully manage their businesses and attain workplace gender equality.

The UK has been a long-standing friend of Kenya's economic growth and development. Being a dynamic and entrepreneurial economy, Kenya, access to finance is one of the major obstacles that are slowing down the growth of businesses, especially women-owned businesses. The new capital facility will be important in helping to tackle this problem.

Besides providing capital to women-owned enterprises, the finance is also to the 2X Challenge, whose mandate is to grow women entrepreneurs as well as grow gender parity in business. With the facility, KCB Bank aims to onboard women entrepreneurs so that they are able to get more credit so as to access the finance and capital that will drive their businesses as well as bring more impact.

This BII-KCB Bank partnership is a clear example of how partnership can help spur sustainable economic growth. This project, with its climate action and gender agenda, will serve as a catalyst for other financial institutions to provide financing to similar projects and initiatives. This partnership, through the provision of financing to strategic women-owned businesses and climate initiatives, will be a major driver of Kenya's green growth as well as to an inclusive economy.

The BII financing is one of a series of efforts to enter Africa's banking industry in depth and drive inclusive and sustainable development. By providing greater access to finance for climate action as well as women-owned enterprises, the project is anticipated to drive sustainable change in Kenya and other places.

Source: British International Investment (BII)