SMEs,Women,Youth to Benefit from KCB and European Investment Bank Partnership

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SMEs, women, and youth-led businesses in Kenya are set to receive a huge financial boost following KCB Bank’s partnership with the European Investment Bank (EIB) Global to launch a €230 million (KSh 32 billion) initiative. This package includes a €115 million credit line from the EIB, matched by KCB’s own funds.

A substantial €30 million (KSh 4.1 billion) will be allocated to support women-led microenterprises, providing them with the necessary financial resources to expand their operations.

Additionally, €100 million (KSh 14 billion) will be directed towards SMEs that prioritize women-run businesses, enabling them to access the capital needed to scale up and create sustainable livelihoods.

Another €100 million (KSh 14 billion) will be invested in initiatives promoting youth employment and inclusive growth, with a particular focus on the agriculture sector. This investment aims to provide opportunities for young people to participate in and contribute to the economy’s development.

KCB Group CEO, Paul Russo, emphasized the bank’s vision for strengthening the SME sector as a cornerstone of community upliftment.

“We are scaling our interventions to build a strong and vibrant SME sector to provide a strong foundation in our efforts to lift communities. We are increasingly addressing the barriers that hinder their growth and use this funding to provide tailored financial solutions, business mentorship, and capacity-building initiatives to ensure that SMEs are not only surviving but thriving in the dynamic marketplace.” he said.

Thomas Östros, Vice President of the European Investment Bank, highlighted the critical role that micro, small, and medium-sized businesses play in Kenya’s economy, while acknowledging their heightened vulnerability compared to larger enterprises.

“Micro, small and medium-sized businesses are the economic lifeblood of Kenya but are more vulnerable to crises than larger enterprises. The lack of adequate, affordable financing puts significant pressure on private lending, which in turn has entrepreneurs and small companies at a disadvantage,” Thomas Ostros stated.

“We believe that this new partnership will help spur private sector growth, gender equality, youth empowerment, promotion of sustainable job opportunities, and reduction of poverty.” he added.

Read: How to Benefit from the KCB Bank and Airtel Money Merchants Payments Deal

H.E. Henriette Geiger, the European Union Ambassador to Kenya, underlined the EU’s commitment to investing in businesses as a driver of economic development.

“For the European Union, investing in businesses is key. EU’s Investing in Young Businesses in Africa (IYBA) is a EUR 4 billion Global Gateway Team Europe Initiative (TEI) that since 2021 it has supported thousands of micro, small and medium-sized businesses across Sub-Saharan Africa. In Kenya only, the TEI IYBA has identified EUR 400 million in projects and initiatives supporting early-stage enterprises.” she noted.

This partnership represents a major step towards achieving gender equality, youth empowerment, and sustainable economic growth in Kenya.