Family Bank has secured a $20 million (Ks.2.6 billion) trade finance facility from British International Investment (BII), for affordable credit for Kenya’s micro, small and medium-sized enterprises (MSMEs).
BII is UK’s development finance institution and impact investor and the funding will focus focus on agribusiness, with half of it directed to women entrepreneurs.
The facility is designed to address persistent liquidity constraints, especially foreign currency shortages, that hinder many MSMEs in trade-related sectors from securing necessary working capital.
At least 75% of the funds will be allocated to trade financing for MSMEs, with a minimum of 50% specifically directed toward women-led businesses and enterprises operating across the agricultural value chain.
This includes agricultural production, logistics, processing, infrastructure, and other supporting services.
“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,” said Family Bank CEO Nancy Njau.
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Family Bank has in its plan a five-year initiative focusing on scaling SME lending and better market segmentation.
From BII’s perspective, the investment mirrors the push to empowering inclusive economic growth in Kenya.
MSMEs contribute 40% to Kenya’s GDP and are vital for youth, women, and vulnerable groups’ employment.
According to Seema Dhanani, East Africa Regional Director and Head of Office, Kenya at BII, the facility will support agri-focused and women-led businesses, with essential trade and working capital finance.
“It is aligned with our support to Kenya’s goal of building a vibrant MSME sector that drives economic and social transformation,” said Dhanani.
This trade finance facility comes as part of 2X Challenge, a global initiative to promote women’s economic empowerment in developing markets, further amplifying its impact.
