KDC, World Bank back climate-smart SMEs with Sh5.6billion funding
The funding forms part of Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, which aims to increase private sector investment, access to markets, and sustainable finance
The World Bank has approved approximately Sh5.55billion ($43million USD) in funding to help Kenyan Small and Medium-sized Enterprises (SMEs) adopt climate-friendly and sustainable technologies, marking a significant intervention in the country’s transition toward a green economy.
The funding will be channelled through the implementing agency, the Kenya Development Corporation’s (KDC) Green Investment Fund, targeting small and medium-sized enterprises adopting climate-friendly and sustainable technologies.
“Through KJET and SAFER, KDC is delivering tangible results by crowding in private capital, strengthening financial intermediaries, and expanding access to patient and affordable finance for SMEs. The Green Investment Fund is a critical step towards scaling climate-smart investments that create jobs, enhance resilience, and support sustainable enterprise growth,” KDC Director General Norah Ratemo said.
Priority sectors include electric mobility and transport, energy-efficient and green buildings, sustainable agriculture, and waste management solutions.
The funding forms part of Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, which aims to increase private sector investment, access to markets, and sustainable finance.
The initiative seeks to combine public resources, technical support, and private capital to de-risk investments and help SMEs adopt climate-aligned solutions.
KDC, the implementing agency, is currently finalising the selection of an independent fund manager to oversee operations, ensure governance, and safeguard the fund’s development and financial objectives.
In addition to KJET, progress was highlighted under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, which has supported over 37,000 enterprises across Kenya.
About 38 per cent of these SMEs are women-owned, and the initiatives have contributed to creating more than 25,000 jobs in various sectors, according to KDC.
Financial institutions, including SACCOs, have rolled out tailored financing solutions and digital lending windows to accelerate loan approvals and expand access for micro and small businesses.
The initiative seeks to combine public resources, technical support, and private capital to de-risk investments and help SMEs adopt climate-aligned solutions.
KDC is currently finalising the selection of an independent fund manager to oversee operations, ensure governance, and safeguard the fund’s development and financial objectives.
