KCB Bank Uganda Limited
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
KCB Bank Uganda Limited (“KCB Uganda”) is a commercial bank in Uganda, wholly owned by KCB Group Plc, a leading East African financial services conglomerate headquartered in Nairobi, Kenya. KCB Group Plc's primary listing is in Kenya, and it is cross-listed on several other regional exchanges. It operates subsidiaries in Kenya, Tanzania, Rwanda, South Sudan, Burundi, the Democratic Republic of Congo, and Uganda, with a representative office in Ethiopia. KCB Uganda commenced operations in 2007 and is now ranked 10th out of 24 commercial banks in Uganda, holding a 3.5% market share of total assets. The bank’s strengths include a regional network, sector-focused strategy, and strong digital banking capabilities, with a particular focus on SMEs, corporates, and retail clients.
What is our funding objective?
FMO provides a USD 20 million senior unsecured loan to KCB Bank Uganda Limited, with the proceeds ring-fenced for on-lending to the SME portfolio. The facility aims to support the growth of SME lending in Uganda. This transaction is aligned with FMO’s strategy to increase investments in Least Developed Countries (LDCs) and to deepen relationships with strong regional banking groups. The funding contributes to job creation, private sector development, and reducing inequalities in Uganda.
Why do we fund this investment?
FMO’s investment in KCB Uganda supports the mutual strategy of sustainable commercial development by enabling the bank to expand its small- and medium-sized enterprise (SME) loan book, thereby fostering economic growth, job creation, and financial inclusion in Uganda. The transaction is highly additional, as it provides long-term, flexible financing in the market. The facility contributes to SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities), and aligns with FMO’s impact mandate in LDCs.
What is the Environmental and Social categorization rationale?
KCB Uganda has been categorized as FI-A, in line with FMO’s Sustainability Policy. However, it is important to note that FMO’s financing will be exclusively directed to the bank’s SME segment, and this portfolio mainly includes clients with activities in agriculture, small-scale manufacturing, and trade. KCB Uganda is implementing a Sustainability Policy and an Environmental and Social Management System (ESMS) policy adopted from its parent company, KCB Group Plc. FMO also supports KCB Uganda in strengthening its ESG risk management through a tailored Environmental and Social Action Plan (ESAP) and technical assistance.
- Website customer/investment
- https://ug.kcbgroup.com/
- Region
- Africa
- Country
- Uganda
- Sector
- Financial Institutions
- Publication date
- 1/5/2026
- Effective date
- 12/16/2025
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A