The recent partnership between EIB Global and KCB Bank Kenya marks a significant advancement in support for small and medium enterprises (SMEs), youth, and women in Kenya. This collaboration involves a substantial investment of €230 million (KShs 32 billion), with €115 million provided as a credit line from EIB Global, matched by an equal amount from KCB Bank. This initiative is part of the broader “Investing in Young Businesses in Africa” (IYBA) program, aimed at fostering economic growth and empowerment across the continent.
Key Components of the Partnership
- Targeted Funding: The financial package allocates €30 million (KShs 4.1 billion) specifically for women-led microenterprises. Additionally, €100 million (KShs 14 billion) is designated for working capital and new investments in SMEs, particularly those owned or operated by women, adhering to the 2X Challenge criteria.
- Youth Employment Focus: Another €100 million (KSh14 billion) will be directed towards promoting inclusive growth and creating job opportunities for youth. This funding will prioritize businesses led by young entrepreneurs or those employing at least 40% young individuals.
- Agricultural Sector Support: One-third of the financing will specifically benefit the agricultural sector value chain, enhancing productivity and sustainability in this vital area.
KCB Bank’s Initiatives Aligned with the Funding
KCB Bank has established several programs that align with this new funding initiative:
- Female-Led and Made Enterprises (FLME): This initiative is dedicated to supporting women entrepreneurs through tailored financial solutions. KCB has committed KShs 50 billion annually to empower female-led businesses. To date, FLME has facilitated loans amounting to KShs 111.6 billion for over 600,000 women entrepreneurs.
- KCB Foundation’s 2jiajiri Program: This program focuses on providing skills training and mentorship to youth, enhancing their employability and entrepreneurial capabilities.
- Boresha Biashara Loan: Designed to support SMEs with accessible financing options, this loan product requires minimal collateral, making it easier for small business owners to secure funding.
- MobiChama: A digital platform that enables investment groups (chamas) to manage their funds more efficiently, promoting collective savings and investments among members.
Supporting Infrastructure
The partnership will also see technical assistance provided by the Gates Foundation, addressing barriers that hinder women’s access to finance, such as lack of collateral or credit history. By leveraging digital technology and risk-sharing mechanisms, this support aims to reduce loan costs for women entrepreneurs and the larger support ecosystem for youth and SMEs.
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