KCB Bank Uganda has launched a new low-cost, long-term financing program aimed at unlocking growth across Uganda’s agricultural value chains and strengthening the capital base of small and medium-sized enterprises (SMEs), sectors widely regarded as the backbone of the country’s economy.
The financing initiative, unveiled during the PEWOSA Trade Fair at Lubiri, comes at a time when access to affordable credit remains one of the biggest barriers to business expansion in Uganda.
The bank has capped short-term working capital facilities at UGX 500 million, targeting agribusinesses, manufacturers, traders, transport operators, women-led enterprises, and youth-owned businesses seeking to scale operations.
The move is expected to support Uganda’s broader economic transformation agenda by promoting value addition, job creation, export growth, and financial inclusion.
Speaking during the trade fair, Wensi Niwagaba, SME Manager at KCB Bank Uganda, said the facility is structured to support businesses operating across production, agro-marketing, and distribution networks.
“The focus is on enabling enterprises to expand capacity, improve productivity, and build resilient businesses capable of competing in local and regional markets,” he said.
The financing initiative extends beyond agriculture to sectors such as manufacturing, construction, and transport, which collectively account for a growing share of Uganda’s private-sector investment.
According to the Uganda Bureau of Statistics, SMEs contribute approximately 90% of the private sector and account for more than 80% of manufactured output.
Despite their importance, many small businesses struggle to secure financing due to collateral requirements, high interest rates, and limited financial records.
To bridge this gap, KCB Bank is mobilizing entrepreneurs into organized associations and cooperatives while delivering financial literacy and business management training through its nationwide branch network.
The approach is intended to improve loan uptake and enhance the sustainability of funded enterprises.
Agriculture contributes nearly 24% of Uganda’s Gross Domestic Product (GDP) and employs more than 70% of the population, according to government statistics.
However, the sector continues to face significant financing gaps, with many farmers and cooperatives lacking access to affordable capital for production, storage, processing, and marketing.
Coffee, Uganda’s leading export commodity, illustrates the challenge. The crop generates an estimated USD 2.4 billion annually in export earnings and supports the livelihoods of more than 1.8 million households.
Yet a large proportion of farmers continue to sell unprocessed beans due to limited access to modern post-harvest equipment and processing infrastructure, reducing their ability to capture higher margins from international markets.
KCB Bank Uganda says its new financing package is specifically designed to address these constraints by funding investments in solar drying systems, eco-friendly coffee pulpers, storage facilities, transportation equipment, and agro-processing technologies.
By improving access to productive assets, the bank aims to help agricultural cooperatives and rural enterprises move beyond primary production and participate more competitively in value-added export markets.
The bank is also strengthening support for women entrepreneurs through its KCB FLME platform, a specialized initiative designed to address structural inequalities in access to finance and productive assets.
Studies indicate that while women provide the majority of labor in Uganda’s agricultural sector, they own less than 20% of productive land and have significantly lower access to formal credit compared to men.
Gladys Nalukenge, Relationship Manager for Women in Business at KCB Bank Uganda, said the program employs alternative credit assessment models and flexible financial solutions tailored to the realities of women-owned enterprises.
