The Kenya Development Corporation (KDC) has hosted senior officials from the World Bank for a high-level review of progress under Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project and the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, both aimed at strengthening private sector-led growth and climate resilience.
The engagement focused on mobilising private capital, expanding access to sustainable finance, and enhancing climate resilience among small and medium-sized enterprises (SMEs). Discussions assessed implementation readiness, governance structures, and scaling prospects, with particular attention on the establishment of the Green Investment Fund (GIF), a key pillar under KJET.
KJET’s overarching objective is to increase private sector investment, improve access to markets and sustainable finance, and support job creation, while advancing Kenya’s green growth and climate resilience agenda. During the review, the World Bank commended the Government of Kenya’s leadership, with KDC as the implementing institution, in advancing a blended finance platform designed to de-risk private investment and unlock patient capital for SMEs adopting climate-aligned and sustainable technologies.
The World Bank reaffirmed its support for the initiative through KJET, emphasising the importance of leveraging public resources, technical assistance, and private capital to achieve impact at scale.
Significant progress has been made in operationalising the Green Investment Fund, with the World Bank channeling USD 43 million to KDC to support investments in priority green growth sectors.
These sectors include electric mobility and transport, energy-efficient and green buildings, sustainable agriculture, and waste management solutions, all identified as offering strong near- and medium-term investment potential, supported by favourable policy direction, growing market demand, and improving enabling conditions.
Governance and fund manager independence also featured prominently in the discussions. The World Bank noted that the ongoing competitive process to appoint an independent fund manager, now at an advanced stage, is a critical milestone in ensuring commercial discipline, managing conflicts of interest, and aligning the fund’s development and financial objectives.
Beyond KJET, the engagement reviewed progress under the SAFER Project, which continues to deliver significant socio-economic impact across the micro, small, and medium enterprise (MSME) sector. To date, SAFER has supported more than 37,000 enterprises, 38 per cent of which are women-owned, and facilitated the creation of over 25,000 jobs.
Through SAFER, SACCOs have introduced tailored SME financing products, including a digital lending window designed to reach micro-businesses, accelerate loan approvals, and significantly expand access to finance.
KDC Director General Ms. Norah Ratemo said the two programmes are already delivering measurable results. “Through KJET and SAFER, KDC is delivering tangible outcomes by crowding in private capital, strengthening financial intermediaries, and expanding access to patient and affordable finance for SMEs. The progress made on the Green Investment Fund marks a critical step towards scaling climate-smart investments that create jobs, enhance resilience, and support sustainable enterprise growth,” she said.
The partnership has also strengthened the integration of environmental, social, and governance (ESG) standards across SME financing. Under both KJET and SAFER, KDC has enhanced its Environmental and Social Management Systems to ensure compliance with national regulations and international best practice. Participating financial institutions, including SACCOs, have been supported to embed ESG screening, risk management, and reporting into their lending processes.
World Bank Regional Director Mr. Hassan Zaman noted that the progress under KJET demonstrates the potential of well-structured blended finance platforms. “The Green Investment Fund framework has strong potential as a replicable model capable of unlocking private investment, supporting job creation, and accelerating climate-aligned growth, while meeting SMEs’ demand for patient capital,” he said.
Looking ahead, the discussions also explored opportunities for additional financing to scale SAFER interventions and expand support to medium-sized enterprises. Strong demand from SACCOs and other financial institutions, alongside the growing uptake of digital and tailored financial products, was identified as a key opportunity to deepen financial inclusion and enable firms to grow and move up the value chain.
The continued collaboration between the Government of Kenya, KDC, and the World Bank is expected to strengthen access to finance, tools, and support for Kenya’s MSMEs, positioning them to drive inclusive economic growth, create jobs, and build resilience in the face of climate change.
