Kenyan businesses could soon access more affordable financing as the East African Development Bank (EADB) considers increasing lending and corporate social investment programs for the private sector.

With a focus on job creation for youth and women, the move comes at a critical time when businesses are struggling with financial inclusion due to high interest rates.

Challenges for traders

While the Central Bank of Kenya recently directed banks to lower rates to 10.75 percent, they remain above single-digit levels, posing challenges for businesses.

This development was revealed at an EADB Council meeting in Kampala, Uganda, attended by Finance Ministers from Uganda, Kenya, Tanzania, and Rwanda, chaired by Uganda’s Finance Minister, Matia Kasaija.

Targeting women

In 2024, EADB injected $50 million (Sh6.45 billion) into the SME sector through partner financial institutions. This funding has generated over 18,000 jobs, with more than 60 percent going to women and youth in agriculture and agribusiness, reinforcing the bank’s commitment to regional food security.

Treasury CS John Mbadi emphasized the private sector’s role in job creation, citing Kenya’s 3.4 million unemployed youths and the annual addition of 800,000 job seekers. He called for integrating youth employment strategies into budgeting processes.

Tanzania’s Finance Minister, Mwigulu Nchemba, underscored the need for financial self-reliance among member states to reduce dependence on external funding.

Private sector participation

EADB Chairman Charles Mwamwaja hinted at plans to boost the bank’s visibility and encourage private-sector participation, noting that many still perceive it as a sovereign lender.

The Governing Council reviewed performance reports and reaffirmed support for the bank’s growth strategies. EADB recently received an “A” rating from S&P Global Ratings and a “Baa3” rating from Moody’s. The next Council meeting is scheduled for Kigali, Rwanda, in 2026.