Family Bank and the European Investment Bank (EIB) Global have announced a significant financing initiative aimed at boosting small and medium-sized enterprises (SMEs) in Kenya, with a strong emphasis on businesses owned or led by women and youth. The two institutions are mobilizing a combined Ksh 14.5 billion (€100 million) in credit to enhance access to finance for underserved entrepreneurs.
EIB Global has committed Ksh 7.3 billion (€50 million) to the initiative, with Family Bank matching the contribution. This strategic partnership is poised to enhance Family Bank’s capacity to serve its predominantly SME customer base, which accounts for approximately 80% of its clientele.
“This partnership not only supports our 2025–2029 strategy to scale SME lending and deepen market segmentation but also enables us to better address the specific needs of SMEs across various value chains for sustainable growth and long-term value,” said Nancy Njau, CEO of Family Bank.
Half of the financing will be dedicated to businesses owned or run by women, while at least 30% will be allocated to youth entrepreneurs. The partnership is part of broader efforts to promote inclusive economic growth and reduce unemployment, particularly among marginalized groups.
EIB Global will also provide technical assistance to Family Bank, aiming to strengthen its gender strategy and improve product offerings tailored to women and youth-led enterprises.
“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,” noted EIB Vice-President Thomas Östros.
The agreement was signed during the second EU-Kenya Business Forum in Nairobi and aligns with the European Union’s Global Gateway strategy, which aims to boost sustainable investments in key sectors such as trade, manufacturing, agriculture, climate action, and services.
This credit facility is expected to empower a new generation of Kenyan entrepreneurs, drive economic inclusion, and stimulate innovation across the SME sector, which is widely regarded as the backbone of the country’s economy.
