Family Bank has strengthened its war chest in loan capital tailored for the small and micro enterprises in Kenya after securing up to $20 million or KES2.6 million in trade finance.

In an update, Family Bank said half of the financing, which was secured from the UK’s development finance institution and impact investor, British International Investment (BII), will be channeled to women-led businesses.

The lender aims to place priority on enterprises within agribusiness, including those engaged in agricultural production, processing, logistics, infrastructure, and broader value chain activities.

The trade finance programme 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 our 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. This is aligned with our support to Kenya’s goal of building a vibrant MSME sector that drives economic and social transformation.”

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