Kenya is set to receive a major boost for its green economy after the World Bank approved fresh financing aimed at expanding climate-friendly businesses and employment opportunities during a challenging economic period.
The global lender will provide KSh5.55 billion (about USD 43 million) to be deployed through the Kenya Development Corporation’s (KDC) Green Investment Fund. The money will support small and medium-sized enterprises (SMEs) that are investing in environmentally sustainable technologies and low-carbon solutions.
The fund will prioritise high-impact sectors such as electric mobility and clean transport systems, energy-saving and eco-friendly construction, climate-smart agriculture, and modern waste management innovations. By targeting these areas, the programme aims to accelerate Kenya’s transition to a greener economy while unlocking new jobs.
This financing falls under Component Three of the Kenya Jobs and Economic Transformation (KJET) Project, a broader initiative designed to stimulate private sector growth, improve access to markets, and expand sustainable financing options. The approach blends public funding, technical assistance, and private capital to reduce investment risks and encourage wider adoption of climate-aligned technologies by SMEs.
KDC, which is overseeing implementation, is in the final stages of appointing an independent fund manager to run the facility, ensure transparency, and protect both development and financial goals.
Officials also highlighted progress under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, which has already assisted more than 37,000 businesses nationwide. Women-owned enterprises account for roughly 38 per cent of beneficiaries, with the initiatives contributing to the creation of over 25,000 jobs.
KDC Director General Norah Ratemo said the programmes are delivering measurable impact by mobilising private capital, strengthening financial institutions, and widening access to affordable, long-term financing for SMEs. She noted that the Green Investment Fund will play a key role in scaling climate-smart ventures that support jobs, resilience, and sustainable growth.
The projects also embed environmental, social, and governance standards to promote responsible lending and safeguard communities and ecosystems. Overall, the partnership between the government, KDC, and the World Bank is expected to strengthen financial inclusion and advance Kenya’s green growth and climate adaptation ambitions.