The European Investment Bank and Family Bank have announced a partnership aimed at mobilising Sh14.7 billion (€100 million) to support businesses owned or led by women and young entrepreneurs in Kenya. Both institutions will each contribute Sh7.35 billion (€50 million) to establish this substantial financing initiative.
According to a statement from Family Bank, “EIB Global is providing a €50 million credit line to Family Bank, which will match the sum in an agreement to expand loans for Kenyan small and medium-sized enterprises (SMEs) and Mid-Caps.” The partnership was formally announced during the second European Union-Kenya business forum in Nairobi.
The financing initiative is designed to boost working capital and investments for Kenyan SMEs and mid-caps, with a focus on businesses operating in the trade and agriculture sectors. Notably, at least 50 per cent of the funding is earmarked for businesses owned or led by women, while a minimum of 30 per cent is reserved for youth entrepreneurs.
Family Bank’s chief executive, Nancy Njau, highlighted the importance of this agreement, noting, “SMEs represent over 80 per cent of our customer base. As a result of our growth efforts, our market revenue from this segment continues to increase, further underscoring the sector’s strong growth potential. This partnership enables us to better address the specific needs of SMEs across various value chains for sustainable growth and long-term value.”
Beyond the credit line, EIB Global will also provide Family Bank with technical assistance to enhance its gender strategy and expand its product offerings. Njau emphasised that support for small businesses goes beyond funding. “We recognise that beyond access to financing and investment opportunities, small businesses, especially those led by women, also need education, information, and networking opportunities with like-minded enterprises,” she said.
This collaboration is part of the European Union’s Global Gateway strategy, which aims to strengthen trade, manufacturing, agriculture, climate action, and services in Kenya. EIB Vice-President Thomas Östros praised the initiative, stating, “The financing partnership we now have with Family Bank will inject much-needed capital into Kenya’s private sector to support businesses and create employment.”
Hans Stausboll, European Commission Director for International Partnerships in Africa, added, “European Fund for Sustainable Development Fund Plus is a testament to our commitment to fostering sustainable economic growth by empowering small and SMEs in partner countries.”
