Family Bank has secured a USD 20 million (KES 2.6 billion) trade finance facility from British International Investment (BII), the UK’s development finance institution.
- •The funding aims to expand access to credit for micro, small, and medium-sized enterprises (MSMEs) in Kenya. It will especially support women-led businesses and agribusiness ventures.
- •At least half of the facility will go to women-led businesses and agribusinesses. These include companies involved in production, processing, logistics, and value chains.
- •The funding qualifies as a 2X Challenge investment, part of a global effort to support women’s economic participation.
Family Bank CEO Nancy Njau said the funding addresses ongoing foreign currency shortages for SMEs. “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 innovative, friendly and cost-effective ways of doing business,” Njau said.
She added that the deal supports Family Bank’s plan to grow SME lending over the next five years.
“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.”
Broader Sector Impact
BII’s Regional Director for East Africa, Seema Dhanani, said MSMEs make up 98% of Kenya’s businesses and are vital for jobs.
“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.”
Dhanani said.
British International Investment is the UK government’s main development finance institution. BII is a founding member of the 2X Challenge, which has raised over $33.6 billion globally for women’s empowerment. BII manages £9.87 billion in assets and invests in more than 1,600 companies across 70 countries.
According to the Kenya National Bureau of Statistics, MSMEs make up 98% of Kenyan businesses and provide most new jobs. However, many still struggle to access affordable trade finance, especially women and agribusiness owners.
