FAMILY BANK SECURES KSH2.6 BILLION BOOST TO SUPPORT SMES AND WOMEN LED BUSINESSES

Family Bank has secured a Ksh2.6 billion ($20 million) trade finance facility from British International Investment(BII) to boost lending to Kenyan businesses, with a strong emphasis on small and medium sized enterprises(SMEs), women led businesses, and agribusinesses. This funding aims to improve access to credit for thousands of Kenyan entrepreneurs and traders, many of whom struggle to secure loans due to foreign exchange shortages and challenging financial decisions. Under the agreement, at least 75% of the facility will be dedicated to trade finance for micro, small, and medium enterprises (MSMEs), while no less than 50% will be directed towards women led businesses and agribusiness ventures.

Eligible agribusinesses include those involved in agricultural production, processing, logistics, infrastructure, and other value chain segments. The financing qualifies as a 2X Challenge investment, a global standard that supports initiatives promoting women’s economic empowerment in developing countries, as entrepreneurs, business leaders, employees, and consumers. Family Bank CEO Rebecca Mbithi noted that the BII facility would accelerate the bank’s five-year growth plan which prioritizes expanding the SME lending portfolio, strengthening sector specific support, and addressing credit access barriers in Kenya’s evolving business landscape.

Bill’s East Africa Regional Director and Head of Office Kenya, Seema Dhanani, emphasized the pivotal role MSMEs play in driving employment, innovation, and poverty reduction. She added that BII’s collaboration with local financial institutions like Family Bank is key to addressing structural challenges that hinder MSME growth, including restricted foreign exchange access and gender based lending inequalities. The facility also supports Kenya’s Vision 2030 and the government’s effort to broaden economic opportunities for women and youth, especially in rural communities. According to the Kenya National Bureau of Statistics (KNBS), MSMEs make up over 90% of all businesses in the country and provide employment for the majority of the population, yet they frequently face financing and liquidity constraints.