NAIROBI, Kenya- Kenya’s small and medium enterprises (SMEs), along with youth- and women-led businesses, just received a major financial boost, thanks to a Sh16 billion commitment from the European Investment Bank (EIB Global).
And it gets even better—KCB Bank Kenya is matching that amount, bringing the total to a whopping Sh32 billion in new funding aimed at fostering entrepreneurship and economic growth in the country.
The initiative, part of the ‘Investing in Young Businesses in Africa’ (IYBA) program, is divided into three key segments to ensure funds reach those who need them most.
Women-led microenterprises will benefit from Sh4.1 billion, while an additional Sh14 billion is earmarked for SMEs, particularly those run by women, to help with working capital and new investments.
KCB Group CEO Paul Russo emphasized the importance of building a resilient SME sector to fuel broader economic progress.
“We are scaling our interventions to build a strong and vibrant SME sector, providing a strong foundation in our efforts to lift communities,” Russo said.
The funds will support not just financial needs but also business mentorship and capacity-building initiatives, creating a holistic support system for these enterprises.
One of the standout features of this deal is the Sh14 billion dedicated to inclusive growth and youth employment.
With a special focus on businesses either led by young entrepreneurs or those employing at least 40pc young people, this segment is aimed at driving sustainable employment opportunities in Kenya.
Given that the youth unemployment rate remains a pressing issue, this investment could be a game-changer for young Kenyans looking to make their mark in business.
The agriculture sector, often a cornerstone of Kenya’s economy, will also see a significant share of the funding.
One-third of the total financing will be allocated to beneficiaries within the agricultural value chain, further reinforcing the country’s push towards economic diversification and food security.
The Gates Foundation is stepping in to offer technical assistance, particularly focusing on issues like the lack of collateral or credit history, which often keeps women and low-income entrepreneurs from accessing necessary funding.
EIB Vice President Thomas Östros highlighted how this partnership could level the playing field for smaller businesses.
“Micro, small and medium-sized businesses are the economic lifeblood of Kenya but are more vulnerable to crises than larger enterprises,” he said.
The project aims to provide affordable financing that can spur private sector growth, gender equality, and youth empowerment, while reducing poverty in the process.
