World Bank Unlocks Sh5.5 Billion Green Fund to Boost Kenyan SMEs and Climate Investmen

Kenya, January 15, 2026 - The World Bank has approved approximately KSh5.55 billion (about $43 million) in funding to help Kenyan small and medium sized enterprises (SMEs) adopt climate friendly and sustainable technologies, officials said. The money will be channelled through the Kenya Development Corporation’s (KDC) Green Investment Fund to support green growth, job creation and resilient business models at a time when the economy faces multiple headwinds.

The commitment was announced as part of Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, a World Bank backed initiative designed to increase private sector investment, market access and sustainable finance for Kenyan enterprises.

According to KDC officials, the new financing will prioritise investments in sectors that combine economic opportunity with environmental sustainability, including: Electric mobility and transport – promoting cleaner vehicle technologies and climate smart logistics.

Energy efficient and green buildings – retrofitting structures and supporting low carbon construction. Sustainable agriculture – climate smart farming practices that raise productivity while reducing emissions and environmental degradation. Waste management and recycling solutions – supporting businesses that turn waste into value.

The design seeks to combine public funds, technical assistance and private capital to derisk investments and help SMEs adopt sustainable technologies that may otherwise be too expensive or risky to pursue on their own. KDC Director General Norah Ratemo emphasised that the Green Investment Fund is aimed not just at climate goals but also at jobs and enterprise growth.

“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,” she said. The Green Investment Fund is seen as a critical step toward scaling climate smart investments that create jobs, enhance resilience and support sustainable enterprise growth.”

The Supporting Access to Finance and Enterprise Recovery (SAFER) Project, a parallel World Bank initiative, has already supported more than 37,000 enterprises across Kenya with tailored finance solutions, about 38 % of them women owned, and has helped create more than 25,000 jobs.