Family Bank has received a Ksh2.6 billion ($20 million) trade finance facility from the British International Investment (BII) to expand its lending to Kenyan businesses.
The bank is aiming to focus on small and medium-sized enterprises (SMEs), women-led businesses and agribusinesses to ease access to credit for thousands of Kenyan entrepreneurs and traders who face difficulties securing loans due to forex shortages and tough economic conditions.
Under the terms of the agreement, Family Bank has announced that the funds will go toward trade finance for MSMEs, and women-led businesses and agribusiness enterprises.
The agribusinesses that will receive funding are those operating within agricultural production, processing, logistics, infrastructure, and other value chain areas.
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About the Family Bank and BII Arrangement
The funding arrangement is a 2X Challenge-qualified investment, a global benchmark that recognizes initiatives empowering women as business leaders, entrepreneurs, employees, and consumers in developing countries.
“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 percent of our customer base, it is crucial for us to roll out innovative, friendly, and cost-effective ways of doing business,” said Nancy Njau, Chief Executive Officer of Family Bank.
According to Njau, the financing from BII would help Family Bank accelerate its five-year growth strategy, which is focused on increasing its SME lending portfolio.
Also, in the next five years, the bank aims to deepen sector-specific support, and close credit access gaps in Kenya’s dynamic business markets.
“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 sectors,” she added.
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BII on Why it Partnered with The Bank
On the other hand, the British International Investment shared its commitment to supporting inclusive economic transformation in Kenya.
Further, BII noted that by working with local financial institutions like Family Bank, it can help unlock structural barriers that prevent MSMEs from thriving, including limited access to foreign exchange and gender biases in lending practices.
The facility also aligns with Kenya’s Vision 2030 goals and the current administration’s push to expand economic opportunities for women and youth, particularly in rural areas.
According to the Kenya National Bureau of Statistics (KNBS), MSMEs account for over 90% of businesses in Kenya and employ the majority of the working population, yet they consistently face capital and liquidity challenges.
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Hello Family Bank,thanks a lot for thinking to give a Kenyan loan for them to boost their small businesses.
Hello family Bank,I want to take this golden opportunity to say THANKYOU very much for taking time to give Kenyans loan for them to boost their small businesses.