The World Bank has committed to give the government of Kenya Ksh5.55 billion (USD43 million) to support green investments and create jobs in the sector amid tough economic times.
The funding will be channelled through the Kenya Development Corporation’s Green Investment Fund, targeting small and medium-sized enterprises adopting climate-friendly and sustainable technologies.
Priority sectors include electric mobility and transport, energy-efficient and green buildings, sustainable agriculture, and waste management solutions.
The funding forms part of Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, which aims to increase private sector investment, access to markets, and sustainable finance.
The initiative seeks to combine public resources, technical support, and private capital to de-risk investments and help SMEs adopt climate-aligned solutions.
KDC, the implementing agency, is currently finalising the selection of an independent fund manager to oversee operations, ensure governance, and safeguard the fund’s development and financial objectives.
In addition to KJET, progress was highlighted under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, which has supported over 37,000 enterprises across Kenya.
About 38 per cent of these SMEs are women-owned, and the initiatives have contributed to creating more than 25,000 jobs in various sectors, according to KDC.
Financial institutions, including SACCOs, have rolled out tailored financing solutions and digital lending windows to accelerate loan approvals and expand access for micro and small businesses.
Norah Ratemo, Director General of KDC, said: “Through KJET and SAFER, KDC is delivering tangible results by crowding in private capital, strengthening financial intermediaries, and expanding access to patient and affordable finance for SMEs. The Green Investment Fund is a critical step towards scaling climate-smart investments that create jobs, enhance resilience, and support sustainable enterprise growth.”
Officials from KDC stated that the combined programs also integrate environmental, social, and governance (ESG) standards to ensure responsible financing and protect communities and the environment.
The continued partnership between the Government of Kenya, KDC, and the World Bank is expected to deepen financial inclusion, strengthen SME resilience, and support Kenya’s green growth and climate adaptation agenda.
