The European Bank for Reconstruction and Development (EBRD) is set to establish its first African continental office in Nairobi, a move set to significantly enhance support for Kenya’s Micro, Small and Medium Enterprises (MSMEs) and strengthen Public-Private Partnerships (PPPs).
Speaking on the sidelines of the Fourth International Conference on Financing for Development in Seville, Spain, President Ruto described the EBRD’s entry as a strategic milestone for the country’s economic transformation.
During bilateral talks with EBRD President Odile Renaud-Basso, President Ruto welcomed a comprehensive partnership plan that includes boosting access to climate finance, promoting green investments, and convening an international investor conference in Nairobi later this year.The ratification of the bank’s establishment in Kenya is currently under parliamentary review.
The EBRD reaffirmed its commitment to align with Kenya’s Bottom-Up Economic Transformation Agenda (BETA), proposing a structured and long-term engagement aimed at deepening financial inclusion and infrastructure development.
Founded in 1991, the EBRD is a leading international financial institution originally created to aid the transition of former Eastern Bloc countries into market economies. Its reach has since expanded to include countries across Eastern Europe, Central Asia, and the Southern and Eastern Mediterranean. The bank specializes in financing private sector development and promoting sustainable, market-driven economies.
In Kenya, MSMEs play a critical role in the economy, contributing around 30% to the national GDP and employing over 15 million people. The government has prioritized this sector by enhancing access to credit, improving business linkages, and addressing systemic challenges through initiatives such as the Draft MSME Policy 2025.
Despite their importance, MSMEs continue to face constraints, including limited financing, infrastructural deficits, regulatory challenges, and gaps in skilled labor. The new partnership with the EBRD is expected to address many of these issues by increasing financing opportunities and bolstering institutional support systems, ultimately fostering innovation, entrepreneurship, and inclusive economic growth.
The EBRD’s involvement is also anticipated to strengthen Kenya’s legal and financial systems, improve infrastructure, and reinforce the development of a resilient private sector capable of driving long-term prosperity.
Separately, President Ruto held talks with Ukrainian Prime Minister Denys Shmyhal, during which both leaders committed to deepening bilateral ties. Discussions focused on expanding educational opportunities for Kenyan students, enhancing food security cooperation, and leveraging Kenya’s strategic location particularly the Port of Mombasa for regional distribution of essential commodities.
The two leaders also explored avenues to grow partnerships in trade, ICT, and multilateral diplomacy, reaffirming their shared commitment to global peace, stability, and a rules-based international order in line with the United Nations Charter.
