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A KShs.32B Deal to Support SMEs, Youth and Women; EIB Global and KCB Bank
EIB Global and KCB Bank Sign €230M (KShs.32B) Deal to Support SMEs, Youth and Women.
The European Investment Bank (EIB Global) and KCB Bank Kenya have t announced a €230 million (KShs. 32 billion) partnership to support small and medium enterprises (SMEs), youth and women in Kenya. €115 million will be a credit line from EIB Global to KCB, matched by €115 million from KCB’s own funds.
A KShs.32B Deal to Support SMEs, Youth and Women; EIB Global and KCB Bank
Through the ‘Investing in Young Businesses in Africa’ (IYBA) initiative, a total of €30 million (KShs. 4.1 billion) will go to women-led/owned micro enterprises.
The package will also see €100 million (KShs.14 billion) dedicated towards working capital and new investments of small and medium enterprises specifically targeting businesses owned or run by women, in line with the 2X Challenge criteria.
The balance of €100 million (KSh14 billion) will target inclusive growth and youth employment opportunities with a focus on businesses led/founded by a young entrepreneur or employing at least 40% young people. One-third of the financing to KCB shall be allocated to beneficiaries in the agriculture sector value chain.
The Gates Foundation will provide technical assistance for the project and address a range of issues that limit women with low incomes from accessing finance – such as lack of collateral or credit history.
European Investment Bank Vice President, Thomas Ostros said, “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. 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,”
KCB Group CEO, Paul Russo said, “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.”
A KShs.32B Deal to Support SMEs, Youth and Women; EIB Global and KCB Bank
The IYBA event brought together players from Kenya’s private sector, government, and European financial institutions and donors to address the current challenges and opportunities available to support youth and women-led enterprises, early-stage businesses, and start-ups in Kenya to grow sustainably and create jobs.
The European Union Ambassador to Kenya, H.E Henriette Geiger said, “For the European Union, investing in businesses is key. EU’s Investing in Young Businesses in Africa (IYBA) is a € 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 € 400 million in projects and initiatives supporting early-stage enterprises”.
The EU Ambassador added: “This new deal between EIB and KCB is another milestone in EU’s support to job creation through the early-stage businesses and SMEs, giving Kenyan entrepreneurs a needed push to grow their businesses and achieve their objectives.”
A KShs.32B Deal to Support SMEs, Youth and Women; EIB Global and KCB Bank
KCB Bank Kenya runs a women focused proposition dubbed Female-Led and Made Enterprises- FLME, where the Bank has set aside KShs.50 billion annually to support women entrepreneurship. This is part of the larger support ecosystem for youth and SMEs.
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