Kenya has taken a decisive step towards green growth and climate resilience after the Kenya Development Corporation (KDC) and the World Bank advanced plans for a landmark Green Investment Fund aimed at mobilising private capital and strengthening small and medium-sized enterprises (SMEs).
KDC on Tuesday hosted senior World Bank officials for a high-level progress review of Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, alongside the Supporting Access to Finance and Enterprise Recovery (SAFER) Project. The engagement focused on implementation readiness, governance frameworks, and scaling opportunities for climate-aligned financing.
The KJET programme seeks to boost private sector investment, expand market access, and grow sustainable finance to create and improve jobs, while supporting Kenya’s broader green growth and climate resilience agenda. Central to this ambition is the Green Investment Fund (GIF), a blended finance platform designed to de-risk private investment and unlock patient capital for SMEs adopting sustainable technologies.
During the discussions, the World Bank commended the Government of Kenya’s leadership, with KDC as the implementing agency, in driving the innovative financing model. The Bank reaffirmed its support under KJET, emphasizing the importance of leveraging public funds and technical assistance to crowd in private capital at scale.
Significant progress has already been recorded. The World Bank has channelled USD 43 million to KDC to operationalize the Green Investment Fund, which will target high-impact green growth sectors including electric mobility and transport, energy-efficient and green buildings, sustainable agriculture, and waste management. These sectors were identified as offering strong near- and medium-term investment potential, supported by policy momentum and rising market demand.
The review also underscored the importance of robust governance. The selection of an independent fund manager—currently at an advanced stage through a competitive process—was highlighted as a critical milestone to ensure commercial discipline, manage conflicts of interest, and align the fund’s financial and development objectives.
Beyond KJET, the SAFER Project continues to deliver tangible socio-economic impact across the MSME landscape. To date, SAFER has supported more than 37,000 enterprises, with 38 per cent women-owned, and facilitated the creation of over 25,000 jobs. Through the programme, SACCOs have introduced tailored SME financing products, including a digital lending window that accelerates loan approvals and expands access to finance for micro-businesses.
KDC Director General Ms. Norah Ratemo said the progress reflects the corporation’s growing role in catalysing sustainable 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. The Green Investment Fund marks a critical step towards scaling climate-smart investments that create jobs and enhance resilience,” she said.
The partnership has also strengthened environmental, social and governance (ESG) integration across SME financing. Under both programmes, KDC has enhanced its Environmental and Social Management Systems, while participating financial institutions—including SACCOs—have been supported to embed ESG screening, risk management and reporting into their lending operations.
World Bank Regional Director Mr. Hassan Zaman noted that the initiative could serve as a model beyond Kenya. “The progress under KJET demonstrates how well-structured blended finance platforms can unlock private investment, support job creation and accelerate climate-aligned growth. The Green Investment Fund has strong potential as a replicable model for meeting SMEs’ demand for patient capital while advancing climate adaptation and mitigation,” he said.
Looking ahead, the partners explored opportunities for additional financing to scale SAFER interventions and expand support to medium-sized enterprises. Rising demand from SACCOs and other financial institutions, coupled with digital and tailored financial products, was identified as a key lever to deepen financial inclusion and help firms move up the value chain.
The continued collaboration between the Government of Kenya, KDC and the World Bank positions Kenya’s micro, small and medium enterprises at the centre of inclusive growth—equipping them with the finance and tools needed to create jobs, attract private investment and build resilience in a changing climate.
