Family Bank has secured a Ksh2.6 billion (USD 20 million) trade finance facility from British International Investment (BII), the UK’s development finance institution and impact investor, aimed at expanding financing access for micro, small, and medium-sized enterprises (MSMEs) in Kenya’s trade-related sectors.
The strategic partnership will channel the funds toward supporting MSMEs engaged in trade, with at least 50% of the facility earmarked for women-led businesses and agribusiness-related ventures. These include enterprises in agricultural production, processing, logistics, infrastructure, and activities across the broader agricultural value chain.
The facility qualifies under the 2X Challenge, a global initiative to advance women’s economic empowerment in developing countries by supporting businesses that are either owned, led by, or primarily employ women.
“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 added that the facility directly aligns with Family Bank’s five-year strategic plan to scale up SME lending and deepen market segmentation while addressing persistent financing gaps, particularly for women-led businesses and enterprises within the trade and agriculture sectors.
Seema Dhanani, BII’s East Africa Regional Director, emphasized the developmental impact of the facility:
“This partnership will boost agri-focused and women-led businesses, aligning with our support to Kenya’s goal of building a vibrant MSME sector that drives economic and social transformation.”
The financing comes at a critical time, as many Kenyan SMEs struggle with access to credit and foreign exchange shortages, limiting their ability to import goods, expand operations, or scale innovation.
With this injection of capital, Family Bank aims to empower thousands of entrepreneurs and business owners, promote inclusive economic growth, and strengthen Kenya’s position in regional and global trade.
Written By Rodney Mbua
