The World Bank has approved new climate-focused financing worth Sh5.5 billion (about $43 million) to support Kenyan small and medium-sized enterprises (SMEs) in adopting sustainable technologies, reinforcing the country’s push for greener, more resilient economic growth.
The funding will be channelled through the Kenya Development Corporation’s (KDC) Green Investment Fund under Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project. The initiative is designed to unlock private capital, create jobs and help businesses transition toward low-carbon and climate-resilient models at a time of growing economic and environmental pressures.
According to KDC, the fund will prioritise investments that combine environmental impact with commercial viability. Target sectors include electric mobility and clean transport, energy-efficient and green buildings, sustainable and climate-smart agriculture, and waste management and recycling solutions that reduce pollution while creating value from waste streams.
By blending public finance, technical assistance and private investment, the Green Investment Fund aims to reduce risks that often prevent SMEs from adopting green technologies. KDC Director General Norah Ratemo said the initiative is as much about livelihoods as it is about climate action.
“This fund is designed to scale climate-smart investments that create jobs, strengthen enterprise resilience and crowd in private capital,” she said, noting that access to patient and affordable finance remains a major barrier for SMEs.
The funding builds on the World Bank-supported Supporting Access to Finance and Enterprise Recovery (SAFER) Project, which has already reached more than 37,000 Kenyan businesses, 38 per cent of them women-owned, and helped generate over 25,000 jobs.
As climate shocks such as droughts and floods increasingly disrupt Kenya’s economy, development partners see SME-focused climate finance as a critical tool for adaptation and long-term sustainability. The Green Investment Fund aligns with Kenya’s national climate commitments and broader efforts to expand green finance, strengthen financial inclusion and support a resilient, low-carbon economic transition.
