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 and impact investor, to expand access to financing for micro, small and medium-sized enterprises (MSMEs) in trade-related sectors across Kenya.
The partnership seeks to bolster trade financing in the country, will direct the funds towards financing trade for MSMEs, while at least 50% will support women-led businesses and agribusiness-related enterprises, including those engaged in agricultural production, processing, logistics, infrastructure, and broader value chain activities. This facility is a 2X-qualified investment, part of a global initiative to drive women empowerment in developing economies.
“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,” said Family Bank CEO Nancy Njau.
“This partnership not only supports the 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,” she concluded.
Seema Dhanani, Regional Director, East Africa and Head of Office, Kenya at BII said: “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.
