Family Bank has secured a Sh2.6 billion line of credit from British International Investment (BII), to expand lending to MSMEs in Kenya.
The new facility is strategically targeted at fostering trade and growth among MSMEs, with at least 50 percent of the funds earmarked for women-led businesses and enterprises engaged in agribusiness.
Family Bank CEO Nancy Njau noted the persistent challenges MSMEs face, especially in terms of accessing affordable foreign currency liquidity, which often limits their ability to finance operations and transact internationally. “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 innovative, friendly, and cost-effective ways of doing business,” Njau said.
The financing will support a wide range of activities, including agricultural production, processing, value chain logistics, infrastructure, and other critical areas that drive Kenya’s rural and urban economies.
As a 2X Challenge-qualified investment, the facility also aligns with global efforts to promote women’s empowerment and inclusive growth in developing markets.
Family Bank’s financial performance remains robust, with the Group posting a net profit of Sh1.05 billion in the first quarter of 2025, up from Sh910 million during the same period in 2024. This new partnership is expected to further strengthen the bank’s support for the backbone of Kenya’s economy.
Seema Dhanani, BII’s East Africa and Regional Head of Office, emphasized the critical role MSMEs play in employment and economic development. “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.”
The facility is expected to create broader economic impact by increasing access to credit for thousands of MSMEs, fostering job creation, and supporting Kenya’s long-term vision of inclusive, sustainable economic growth.
