KDC hosted World Bank officials for a progress check on key projects. Talks focused on green financing and private investment for SMEs
Kenya Development Corporation (KDC) has held a senior-level meeting with World Bank officials to review progress on major programmes supporting small and medium businesses.
The discussions covered Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project and the ongoing SAFER Project, both aimed at boosting private investment, job creation, and climate-focused growth.
At the centre of the talks was the rollout of the Green Investment Fund (GIF), a financing tool designed to attract private money while reducing risk for investors.
The initiative targets SMEs adopting climate-friendly solutions, in line with Kenya’s push for green growth and stronger climate resilience.
The World Bank has already committed USD 43 million to KDC to support the Green Investment Fund.
The money will back projects in areas such as electric transport, energy-saving buildings, sustainable farming, and waste management, sectors seen as ready for fast growth due to policy support and rising market demand.
World Bank officials stressed the need for strong oversight and independent management of the fund.
They noted that the process to appoint an independent fund manager is at an advanced stage, a move expected to protect transparency, ensure fair decisions, and keep the fund focused on both business returns and development impact.
Beyond KJET, the meeting also reviewed gains made under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project.
So far, the programme has supported more than 37,000 MSMEs, with women owning 38 per cent of the businesses. It has also helped create over 25,000 jobs across the country.
Through SAFER, SACCOs have introduced custom-made loan products for SMEs, including digital lending options.
These tools have helped speed up loan approvals and opened financing doors for micro and small businesses that were previously locked out.
KDC Director General Norah Ratemo said the two projects are already delivering real impact.
She noted that KDC is drawing in private investors, strengthening lenders, and widening access to affordable and long-term finance for SMEs, with the Green Investment Fund marking a major step in scaling climate-smart investments.
The partnership has also improved how environmental, social, and governance (ESG) standards are applied in SME financing.
KDC has upgraded its systems to meet both local and global requirements, while SACCOs and other lenders are now using ESG checks in their loan processes to promote responsible lending.
World Bank Regional Director Hassan Zaman said the progress under KJET shows how blended finance can unlock private capital, support jobs, and drive climate-aligned growth.
He added that the Green Investment Fund could serve as a model for other markets seeking patient capital for SMEs.
Looking ahead, both sides explored ways to raise additional funding to scale SAFER and extend support to medium-sized firms.
Strong demand from SACCOs and growing use of digital financial products were highlighted as key opportunities to deepen inclusion and help businesses grow.
The ongoing collaboration between the Government of Kenya, KDC, and the World Bank is expected to ensure that MSMEs get the finance, skills, and support needed to create jobs, grow sustainably, and withstand climate challenges.
