KCB is set to receive fresh funding from the International Finance Corporation (IFC). The proposed KES 19.4 billion facility is aimed at expanding lending to small businesses and strengthening the bank’s capital position.
The IFC plans to provide KCB Kenya with KES 19.4 billion, equivalent to $150 million. The proposal is scheduled for consideration by the IFC board on September 4.
The facility includes $100 million from IFC’s own account. Another $50 million will be mobilised from parallel lenders. IFC will also offer advisory support to help KCB implement a sustainable finance framework. In addition, the package includes a risk-reduction instrument. The loan structure will be tailored to the size and tenor of the facility.
The proposed funding comes as KCB continues to grow its lending activities. The bank’s loan book stood at KES 1.7 trillion at the end of the first quarter. This was up from KES 1 trillion recorded a year earlier.
During the quarter, KCB advanced an estimated KES 13 billion to micro, small and medium-sized enterprises. The latest IFC proposal would further support lending to this segment.
The funding follows a series of development finance facilities secured by KCB in recent years. In July, the bank received a KES 12.9 billion facility from the European Bank for Reconstruction and Development. The funding targets women-led and youth-led businesses, as well as green enterprises.
KCB also secured a KES 12.9 billion facility from British International Investment in 2025. In 2024, the European Investment Bank extended KES 32 billion to the lender. The bank’s borrowings from development finance institutions rose to KES 72.4 billion in March. This was up from KES 67.5 billion a year earlier.
The proposed IFC support comes as the Central Bank of Kenya pushes lenders to increase private-sector credit. Private-sector lending grew by 9.3 percent in May 2026. That remains below the 12 to 15 percent range considered supportive of strong economic growth.
