Family Bank has secured Ksh 2.6 billion in funding from British International Investment (BII), the UK’s development finance institution and impact investor, in a significant boost aimed at empowering small and medium-sized enterprises (SMEs) across Kenya. The financing facility is set to enhance the bank’s trade finance capacity, with a strong focus on supporting women-led businesses and agribusiness enterprises.
Half of the facility will be channelled toward lending to small businesses in Kenya, while the other half will specifically target women-led enterprises and those operating in the agribusiness value chain. These include businesses involved in agricultural production, processing, logistics, and related infrastructure.
“SMEs in Kenya continue to grapple with foreign currency liquidity constraints, which hamper their ability to access affordable financing and transact seamlessly,” said Family Bank CEO Nancy Njau. “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 further highlighted that the facility qualifies under the 2X Challenge, a global initiative aimed at driving gender lens investing and empowering women in developing economies.
BII’s Regional Director for East Africa and Head of Office in Kenya, Seema Dhanani, underscored the importance of the partnership in addressing the financing needs of Kenya’s MSMEs. “In Kenya, MSMEs make up 98 per cent of all businesses and are vital for employment, particularly for youth, women, and vulnerable groups. 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,” she said.
The new funding is aligned with Family Bank’s five-year strategic plan that emphasizes strengthening SME lending and tackling persistent financial access challenges, particularly for underserved groups. By targeting key sectors such as agribusiness and women-led enterprises, the partnership is expected to drive inclusive economic growth, improve livelihoods, and support job creation across the country.
