KCB Foundation has partnered with Hivos, the Kenya Private Sector Alliance (KEPSA), Somo and United States International University-Africa (USIU-Africa) to launch the European Union-funded “Tujenge Pamoja” initiative aimed at accelerating Kenya’s transition to a circular green economy.

The programme was launched in Nairobi and will be implemented under the EU SWITCH Africa Green Programme, according to a statement from the partners. It seeks to shift enterprises away from the linear “take–make–dispose” model toward circular approaches anchored on repair, reuse, recycling and resource efficiency.

Under the initiative, the partners said the programme will support 3,200 Micro, Small and Medium Enterprises (MSMEs) to adopt sustainable and commercially viable circular business models. It also aims to strengthen 40 Business Support Organizations (BSOs) as well as Technical and Vocational Education and Training (TVET) institutions to serve as innovation and enterprise development hubs across the country.

The launch comes as Kenya continues to face rising waste management and climate pressures, while MSMEs remain central to employment and economic activity. Circular economy programmes are increasingly being positioned by development partners and private sector institutions as a way to reduce waste while opening new opportunities in recycling, green manufacturing and sustainable services.

Mendi Njonjo, Director at KCB Foundation, said the programme is intended to strengthen MSMEs through financing and skills. “This programme is about economic resilience, dignity and opportunity for millions of Kenyans whose livelihoods depend on MSMEs. By empowering small businesses with green financing, innovation, and skills, we are building enterprises that can compete, create jobs, and drive Kenya’s transition to a more inclusive and circular economy,” Njonjo said during the Nairobi launch.

Henriette Geiger, European Union Ambassador to Kenya, said the shift could unlock economic opportunities alongside environmental gains. “The transition to a circular economy is not only an environmental imperative, but also a major economic opportunity for Kenya. Through ‘Tujenge Pamoja’, we are strengthening innovation, supporting MSMEs, creating green jobs, and promoting inclusive growth that leaves no one behind,” Geiger said.

According to the partners, the programme also aims to create green jobs—particularly for women and youth—reduce waste streams and greenhouse gas emissions, and improve access to green financing through catalytic funding mechanisms to help enterprises scale environmentally responsible solutions. The initiative includes a Gender Equality and Social Inclusion (GESI) focus that prioritises women-led, youth-led and marginalised enterprises.

Key value chains targeted include plastics and packaging, organic waste management through composting and biogas solutions, and sustainable textiles, the statement said.

For Kenya’s business landscape, the initiative signals continued momentum in linking MSME support to climate and resource-efficiency outcomes, with potential downstream effects across waste management, manufacturing inputs and consumer goods. By strengthening business support organisations and TVET institutions, the programme could also influence workforce skills and the availability of advisory services for firms shifting to circular models.

The partners said the initiative aligns with Kenya Vision 2030, the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement, and the Sustainable Development Goals—particularly SDG 8 on decent work and economic growth, SDG 12 on responsible consumption and production, and SDG 13 on climate action. Next steps will include rolling out enterprise support and capacity-building activities through participating organisations and training institutions.

KCB Bank Kenya has launched a mortgage financing product aimed at expanding home ownership access for micro, small and medium enterprises (MSMEs) and workers in Kenya’s informal economy, the lender said in a press release dated April 29, 2026.

The bank said the product offers a single-digit interest rate and is designed for borrowers such as artisans, boda boda operators, gig economy workers and digital content creators, whose income streams may be irregular but can be evidenced through transaction patterns. The facility targets applicants who have operated a business for at least two years.

According to KCB, the mortgage loans will range from KES 1 million to KES 4 million, with a maximum repayment period of 15 years.

The announcement comes amid persistent constraints in Kenya’s housing market, where formal mortgage access has historically been limited to salaried borrowers and higher-income segments. KCB linked the new product to the country’s affordable housing agenda, while pointing to structural barriers such as credit assessment models that rely on formal employment documentation.

Speaking during the launch, Caroline Wanjeri, Director of Mortgage Business at KCB Bank Kenya, said mortgage uptake has remained concentrated among formally employed Kenyans. “For years, Kenya’s mortgage uptake has been concentrated among formally employed and middle to high income earners, a scenario that has kept the mortgage penetration levels at around 3%,” Wanjeri said.

Wanjeri added that the target market is significant given the structure of Kenya’s labour market. “With more than 80% of Kenya’s workforce operating in the informal sector, the new mortgage solution seeks to increase financial inclusion, ease the rigid credit assessment mortgage models and enable an increase in homeownership for Kenyans,” she said.

KCB said the product will use non-traditional data points to assess affordability, rather than the conventional reliance on payslips and employer contracts. The bank said it will consider transactional history, mobile money flows, business records, savings patterns and other alternative data to determine repayment capacity.

“This solution acknowledges that Kenya’s economy runs on enterprise. By combining alternative credit assessment and financial discipline we are making mortgage financing accessible by redefining eligibility through consistency in business performance as a credible pathway to dignified home ownership,” Wanjeri said.

The move highlights a broader push by lenders to design credit products for borrowers outside formal payroll systems, as competition intensifies in retail banking and as digitised transaction trails make underwriting more data-driven. For Kenya’s banking sector, such models could deepen mortgage penetration if risks are properly priced and borrowers are supported to maintain stable repayment behaviour.

KCB cited housing demand pressures as part of the backdrop for the product’s launch, pointing to an annual urban growth rate of 4.4% and a housing backlog affecting low-income households. The bank also referenced Kenya’s Vision 2030 Third Medium Term Plan (MTP III) 2018–2022, which identifies affordable housing as a pillar for inclusive growth.

However, KCB noted that progress has been constrained by limited investment finance into housing, rising construction costs and affordability challenges along the housing value chain. The bank described the new product as an intervention intended to improve access to longer-term credit for prospective homeowners.

Going forward, the scale of uptake will likely depend on how quickly the bank can operationalise alternative credit scoring across customer segments and how the product is aligned with property supply in the targeted price bands. KCB did not disclose expected disbursement volumes or portfolio targets in the press release.

Payments platform PayKit has launched in Kenya, positioning its services around high-volume payments, reconciliation and multi-currency capabilities for micro, small and medium-sized enterprises (MSMEs) and digital platforms. The company said on April 22, 2026 in Nairobi that it processed about KES 30 million in transaction value during a pilot phase over the last 2.5 months and is targeting 50–60 million transactions by the end of the year.

The launch comes as Kenya’s digital payments market continues to deepen, driven largely by mobile money. PayKit cited data from the Communications Authority of Kenya showing mobile money penetration exceeds 98% of the adult population, with more than 51 million active accounts and annual transaction volumes above KES 8.6 trillion.

PayKit’s strategy is aimed at businesses that increasingly require tools to manage disbursements, settlement and back-office processes as transaction volumes rise and more firms trade across borders. The company argues that many payment providers still concentrate on consumer wallets or basic collections, leaving operational gaps for businesses dealing with complex financial flows.

The focus on MSMEs is significant in Kenya’s business landscape. PayKit referenced Kenya National Bureau of Statistics data indicating the country has about 7.4 million MSMEs—around 98% of all business entities—contributing about 30% to 40% of GDP and employing more than 14.9 million people.

“Digital payments in Kenya have largely solved access. The next challenge is scale and efficiency because businesses today need need to send, reconcile, settle and manage funds across multiple channels and currencies in real time, in addition to receiving payments,” said Beatrice Okeyo, PayKit’s CEO.

According to the press release, PayKit’s product set includes high-volume disbursements for supplier and payroll payments, faster settlement to support cash flow, and “intelligent reconciliation” to reduce manual matching of payments to transactions. The firm also said it offers multi-currency support, which it framed as increasingly important as Kenyan businesses expand across borders and as new payment corridors emerge.

PayKit said it is regulated by the Central Bank of Kenya (CBK). It was founded in 2023 and has been developing and refining its technology since then, while setting up operations and securing approvals to operate in the country, according to the company.

In its growth plan, the firm said it aims to onboard about 15,000 merchants by year-end and reach 500,000 mobile app downloads, supported by a merchant portal and a mobile application.

“There is a clear need for more advanced payment infrastructure because many businesses in Kenya, and indeed most of Africa, continue to face challenges such as limited interoperability and high operational overheads. In many sectors, cash and manual processes still play a significant role, highlighting the gap between access to digital payments and the ability to use them efficiently at scale. This is the gap that PayKit sufficiently bridges,” Okeyo said.

Regionally, PayKit said it is evaluating expansion within 18 to 24 months, with Rwanda identified as a priority market. The company attributed its interest to what it described as an enabling regulatory environment that allows payment service providers to operate more seamlessly without needing to register afresh in the country.

For Kenya’s fintech and payments sector, PayKit’s entry adds to competition among payment service providers seeking SME volumes beyond basic collections, as businesses demand interoperability, automation and improved controls. The company’s ability to meet its transaction, merchant and adoption targets is likely to depend on integration depth with existing payment rails, pricing, and operational reliability at scale—areas that have increasingly differentiated providers in a crowded market.

PayKit said its next milestones include scaling transaction volumes through its portal and app, expanding its merchant base, and progressing regulatory and market evaluations for entry into other East African markets.