Green Investment Fund progress featured prominently as the Kenya Development Corporation and the World Bank reviewed efforts to expand climate-aligned financing and strengthen SME growth. The high-level engagement examined milestones under the Kenya Jobs and Economic Transformation Project and the Supporting Access to Finance and Enterprise Recovery Project. Together, these initiatives aim to boost private sector-led growth while improving climate resilience across the economy.
Green Investment Fund drives blended finance agenda
The Green Investment Fund remains central to Kenya’s climate finance strategy. Under KJET, the fund seeks to mobilise private capital, reduce investment risk, and unlock long-term financing for SMEs adopting sustainable technologies. During the review, World Bank officials praised the Government of Kenya, working through KDC, for building a blended finance platform that attracts patient capital.
As a result, the Green Investment Fund aligns financial returns with development impact. Moreover, it supports Kenya’s green growth agenda by encouraging environmentally responsible business models.
World Bank funding accelerates fund rollout
Progress on the Green Investment Fund continues to build momentum. The World Bank has already channelled USD 43 million to KDC to support investments in priority green growth sectors. These include electric mobility, energy-efficient buildings, sustainable agriculture, and waste management solutions.
Importantly, these sectors show strong near- and medium-term potential. They also benefit from supportive policy frameworks, rising demand, and improving market conditions. Consequently, the Green Investment Fund stands well positioned to deliver economic and environmental gains.
Governance safeguards commercial discipline
Governance discussions formed a key part of the engagement. The World Bank stressed the importance of appointing an independent fund manager to protect commercial discipline and avoid conflicts of interest. The competitive selection process has now reached an advanced stage.
This milestone strengthens confidence in the Green Investment Fund. In turn, it improves the fund’s ability to attract institutional and private investors.
SME financing expands under SAFER
Beyond the Green Investment Fund, the review assessed progress under the SAFER Project. To date, SAFER has supported more than 37,000 micro, small, and medium enterprises. Notably, women-owned businesses account for 38 per cent of beneficiaries. The programme has also helped create over 25,000 jobs.
Through SAFER, SACCOs have launched tailored SME financing products. These include digital lending solutions that speed up approvals and expand access to finance for micro-businesses.
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ESG standards strengthen SME lending
The partnership has also improved ESG integration across SME financing. Under KJET and SAFER, KDC upgraded its Environmental and Social Management Systems to meet national rules and international standards.
At the same time, participating financial institutions received support to embed ESG screening and reporting into lending processes. As a result, SMEs can now access finance while meeting sustainability requirements.
World Bank highlights scalable model
World Bank Regional Director Hassan Zaman said the Green Investment Fund offers a strong, replicable model. He noted that blended finance platforms can unlock private investment, support job creation, and accelerate climate-aligned growth.
Furthermore, the model addresses SMEs’ need for patient capital. Therefore, it holds potential beyond Kenya’s borders.
Next phase focuses on scaling impact
Looking ahead, the partners discussed options to secure additional funding for SAFER. The aim is to expand support to medium-sized enterprises. Strong demand from SACCOs and other lenders supports this approach.
Continued collaboration between KDC, the World Bank, and the Government of Kenya will strengthen access to finance. Ultimately, SMEs will gain better tools to grow, create jobs, and build resilience against climate risks.
