Kenya's SMEs Gain $150M IFC Funding Boost

The International Finance Corporation (IFC) has entered a partnership with fintech lender 4G Capital under its Catalytic First Loss Guarantee (CFLG) programme to unlock financing for Kenya’s micro‑ and small‑business sector, including women‑owned and climate‑focused enterprises. IFC will commit $24.2 million in first‑loss capital, backed by $11 million from the IDA Private Sector Window, to mobilise roughly $120 million of additional lending, targeting a total of about $144 million in local‑currency credit for underserved firms.

In a separate transaction, IFC plans a Sh19.4 billion (about $150 million) loan to Kenya Commercial Bank (KCB) – $100 million directly from IFC and $50 million from parallel lenders – to strengthen the bank’s capital base and expand SME credit. The loan will be accompanied by advisory services to help KCB implement a sustainable‑finance framework. KCB, which already has a loan book of Sh1.7 trillion, has previously accessed development financing from the EBRD and other multilateral lenders to support green and gender‑inclusive lending.

Both initiatives aim to address Kenya’s sizable financing gap for micro, small and medium enterprises, which account for roughly 90 % of businesses and employ more than 15 million people.