Family Bank Limited has entered into a significant financing agreement with British International Investment (BII), the UK’s development finance institution and impact investor. The deal secures a USD 20 million (KES 2.6 billion) trade finance facility aimed at increasing access to trade-related financing for micro, small, and medium-sized enterprises (MSMEs) in Kenya.
The newly announced partnership will see the funds channelled specifically into trade finance, with a minimum of 50 per cent allocated for women-led businesses and agribusiness ventures. These include enterprises involved in agriculture production, processing, logistics, infrastructure, and activities along the value chain. The facility has received a 2X qualification, indicating its alignment with global efforts to support economic empowerment for women in emerging markets.
Family Bank CEO Nancy Njau said, “SMEs in Kenya continue to grapple with foreign currency liquidity constraints, which hamper their ability to access affordable financing and transact seamlessly. With SMEs forming over 80 per cent of our customer base, it is crucial for us to roll out innovate, friendly and cost-effective ways of doing business.”
She added, “This partnership not only supports our five-year strategy to scale SME lending and deepen market segmentation but also accelerates our ambition to bridge financing gaps for vital businesses, particularly those led by women and those in the trade and agriculture sector.”
BII’s Regional Director, East Africa and Head of Office, Kenya, Seema Dhanani, emphasised the importance of MSMEs to Kenya’s economy. “In Kenya, MSMEs make up 98 per cent of all businesses and are vital for youth, women, and vulnerable groups’ employment. Our partnership with Family Bank enables us to support these small businesses, particularly agri-focused and women-led ones, with essential trade and working capital finance. This is aligned with our support to Kenya’s goal of building a vibrant MSME sector that drives economic and social transformation.”
The collaboration marks a strategic step towards addressing the persistent financial challenges faced by small enterprises in Kenya and is expected to play a key role in strengthening the backbone of the country’s trade economy, particularly in sectors vital to inclusive growth.
