Family Bank has announced the successful acquisition of a USD 20 million (KES 2.6 billion) trade finance facility from British International Investment (BII) . The UK government’s development finance institution and impact investor.
The strategic funding aims to strengthen access to trade finance for micro, small, and medium-sized enterprises (MSMEs) in Kenya. A strong focus on women-led businesses and agribusinesses.
Supporting MSMEs in trade and agriculture
The facility will primarily be channelled towards enhancing trade financing opportunities for MSMEs operating in trade-related sectors. At least 50 per cent of the funding will specifically support women-owned businesses and enterprises engaged in agricultural production, processing, logistics, infrastructure, and broader agri-value chain activities.
However, this funding is part of BII’s 2X Challenge initiative. A global effort to promote gender-lens investing and economic empowerment of women in developing economies.
Closing financing gaps in a challenging environment
Family Bank CEO Nancy Njau highlighted the significance of the partnership in addressing persistent liquidity challenges faced by SMEs in Kenya. This is especially in accessing foreign currency for trade transactions.
“SMEs in Kenya continue to grapple with foreign currency liquidity constraints, which hamper their ability to access affordable financing and transact seamlessly,” said 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.”
She noted that the facility aligns with Family Bank’s five-year strategy to expand SME lending and deepen market segmentation. while reinforcing its commitment to supporting high-impact sectors such as trade and agriculture.
Catalyzing inclusive growth and job creation
BII Regional Director for East Africa and Head of Office in Kenya, Seema Dhanani, reiterated the role of MSMEs in driving inclusive economic growth across the country.
“In Kenya, MSMEs make up 98 per cent of all businesses and are vital for youth, women, and vulnerable groups’ employment,” said Dhanani. “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.”
Dhanani added that the investment aligns with Kenya’s long-term vision of building a vibrant MSME sector as a key pillar of economic and social transformation.
Advancing Kenya’s development finance Landscape
Moreover, this trade finance facility underscores Family Bank’s rising influence in Kenya’s development finance ecosystem, particularly in mobilizing global capital to support underserved sectors. It also highlights BII’s ongoing commitment to Kenya’s development agenda, having backed several inclusive and climate-resilient initiatives in the country.
With this new partnership, Family Bank is poised to scale its support to MSMEs. Additionally, it will empower women entrepreneurs, and catalyze growth in agribusiness. ultimately strengthening Kenya’s resilience and competitiveness in regional and global markets.