KCB receives €30M to support women entrepreneurs in Kenya, offering loans and mentorship to startups. Apply now and access growth funding for your business.
By Charles Wachira

In a major step towards empowering women entrepreneurs in Kenya, the Kenya Commercial Bank (KCB) received €30 million (approximately KSh 4.2 billion) in April 2024. 

This significant funding was granted by the Bill & Melinda Gates Foundation in partnership with the European Investment Bank (EIB), aimed at advancing women-led businesses and startups across the country.

Supporting Women Entrepreneurs: The Inception

The grant was a targeted effort to fill the long-standing financial gap that women in business often face, especially in Kenya’s rapidly growing economy.

 Recognizing the potential that lies in women entrepreneurs and startups, the initiative was structured to help create more sustainable and impactful business environments, allowing more women to access the capital necessary to start or scale their businesses.

Speaking on the funding, KCB’s Chief Executive Officer Paul Russo highlighted the bank’s commitment to advancing financial inclusion and specifically empowering women-led businesses.

 He noted, “This partnership is more than just a funding mechanism. It is a platform to give women the financial tools and support they need to thrive in a competitive economy. We see the untapped potential in women entrepreneurs and are committed to breaking down barriers to ensure they can access the capital and financial literacy they need to succeed.”

The Significance of the Fund

The €30 million grant is designed to provide a mixture of soft loans, grants, and credit guarantees to women entrepreneurs.

 The loans, which will come with preferential interest rates and flexible repayment terms, are aimed at encouraging more women to formalize their businesses, enter competitive markets, and drive innovation.

Werner Hoyer, President of the European Investment Bank, expressed excitement about the collaboration: “We are proud to support Kenya’s thriving entrepreneurial landscape through this initiative. Women-led businesses are critical to the country’s economic future, and through this fund, we aim to eliminate the financial hurdles these entrepreneurs face. This investment is more than just a financial contribution; it is an investment in Kenya’s socio-economic growth.”

How to Access the Funds

Access to these funds has been structured to ensure inclusivity and transparency. Women entrepreneurs interested in applying for the loans can do so through KCB’s online platform or by visiting any of their branches nationwide.

 Additionally, KCB will host a series of workshops and seminars across Kenya to help women understand the lending process, provide business training, and guide them on how to best utilize the available resources.

The application process is streamlined to encourage participation. Applicants must provide:

1. A viable business plan or a solid expansion strategy for existing businesses.
2. Proof of business registration (for established enterprises).
3. Clear identification and verification documents.
4. A sound understanding of their business finances.

KCB’s Director of Women Banking, Dr. Ann Mutahi, emphasized the bank’s focus on inclusivity, stating, “We want to make sure that no one is left behind. Whether you are a woman just starting your business journey or have been running a business for years, we are here to offer financial and advisory support. Our goal is to enable women to grow their businesses, create jobs, and contribute meaningfully to Kenya’s economic development.”

Disbursement of the Funds

The funds are to be disbursed in phases, ensuring that as many women as possible benefit from the program. KCB will be offering loans of up to KSh 10 million for startups and up to KSh 50 million for more established enterprises that demonstrate significant growth potential. 

This tiered approach ensures that small and large businesses alike can access the capital they need to thrive.

Additionally, a portion of the funds has been earmarked for startup incubation programs, which will provide young women entrepreneurs with mentorship, training, and access to networks, helping them build scalable and sustainable businesses.

According to a statement from the Bill & Melinda Gates Foundation, “Our collaboration with KCB and the EIB represents our commitment to supporting innovative and impactful financial solutions that will transform the lives of women entrepreneurs.

 We are confident that this fund will enable women across Kenya to not only grow their businesses but also become key players in the global marketplace.”

Challenges Women Entrepreneurs Face

While Kenya has made significant strides in supporting entrepreneurs, access to finance remains one of the most significant challenges faced by women in business. 

According to data from the International Finance Corporation (IFC), the financing gap for women-owned businesses in Kenya stands at over KSh 80 billion annually. Women often face more stringent lending requirements, and their businesses are perceived as higher risk by financial institutions, despite many of them demonstrating robust business models and growth potential.

KCB, through its partnership with the Gates Foundation and EIB, hopes to bridge this gap and address the systemic financial barriers that disproportionately affect women.

Voices from Beneficiaries

One of the early beneficiaries of the fund, Mary Wambui, who runs an agro-processing startup, expressed her gratitude for the initiative: “I have always struggled to get the capital to scale my business. With this funding, I was able to expand my operations and hire more staff. KCB has given me a lifeline and the confidence to push my business further.”

Another entrepreneur, Grace Njeri, who owns a clothing line, shared similar sentiments: “I had reached a point where I thought my business was stagnant, but this program has opened doors I never thought possible. It’s not just the money; it’s also the mentorship and business development support that has made the difference.”

Lessons for Aspiring Entrepreneurs

As this funding continues to empower more women, the key lesson from the initiative is the importance of financial literacy, mentorship, and access to capital.

 Entrepreneurs must be prepared with clear business plans and strategies that demonstrate both short-term and long-term potential.

CEO Paul Russo summarized the broader impact, saying, “The success of this program will go beyond financial numbers. It’s about changing lives, empowering women, and ensuring that they play a pivotal role in Kenya’s economic future.”

Conclusion

The €30 million fund provided to KCB by the Bill & Melinda Gates Foundation and the European Investment Bank is a landmark step toward achieving gender parity in Kenya’s entrepreneurial landscape. By breaking down financial barriers and providing women with the resources and support they need, KCB is helping to unlock the potential of women entrepreneurs, who are crucial to the nation’s economic growth and development. Through this initiative, KCB aims to contribute to building a more inclusive and prosperous Kenya, where women-led businesses can thrive.

Keywords:Women entrepreneurs:KCB funding:Business loans:Startup growth:Kenya