The African Development Bank has pledged $150 million, equivalent to roughly Sh19.49 billion, to improve access to long‑term financing for small and medium‑sized enterprises in Kenya.

Equity Bank Kenya will act as the conduit for the eight‑year facility, using the funds to broaden its capacity to offer longer‑duration loans to SMEs that typically face high borrowing costs.

The programme targets firms operating in agriculture, manufacturing, trade, logistics and environmentally‑focused sectors, with a priority on enterprises led by women or young entrepreneurs.

Equity Bank, which already serves about 1.9 million SME customers across both urban and rural areas, will distribute the new credit through its existing branch network.

AfDB projects that the facility will enable roughly 9,000 additional SME loans by the end of 2030 and will raise the share of financing directed to women‑ and youth‑run businesses.

Loan terms include a five‑year grace period during which principal repayments are deferred, and the facility is part of Equity Bank’s broader $500 million capital‑raising effort.

In parallel, the AfDB will allocate up to $250,000 (about Sh32.5 million) for technical assistance under its Affirmative Finance Action for Women in Africa initiative, and up to $900,000 (approximately Sh117 million) for non‑financial support via the SME Credit Catalyst Programme.

The technical assistance is intended to bolster business advisory services, expand digital financing tools and develop tailored financial products for women and young entrepreneurs.