A fresh injection of Sh2.6 billion is set to flow into Kenya’s small business sector after Family Bank struck a trade finance deal with British International Investment, aimed at easing access to credit for traders, agribusinesses, and women-led enterprises across the country.
The new facility, equivalent to USD 20 million, will provide working capital to micro, small, and medium-sized businesses, particularly those navigating the rising costs of cross-border trade and limited access to foreign currency.
Under the agreement, at least half of the funds will be channelled into businesses owned or led by women, and those operating in agriculture and related value chains such as processing, logistics and infrastructure.
Nancy Njau, the Chief Executive Officer of Family Bank, described the support as essential to addressing ongoing liquidity challenges facing the SME sector.
“SMEs in Kenya continue to grapple with foreign currency liquidity constraints, which hamper their ability to access affordable financing and transact seamlessly," Njau said.
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"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."
She further explained that the funding backs the lender’s long-term goals.
“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 added.
The agreement qualifies under the global 2X Challenge framework, an international initiative designed to unlock capital for women’s economic empowerment in emerging economies.
By earmarking over 50 per cent of the funding for women-led ventures, the investment aligns with broader development objectives.
British International Investment’s Regional Director for East Africa, Seema Dhanani, said the collaboration ties in with Kenya’s national ambition to empower small businesses and boost employment.
“In Kenya, MSMEs make up 98 per cent of all businesses and are vital for youth, women, and vulnerable groups' employment," Dhanani said.
"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."
According to Dhanani, this is aligned with the institution's support to Kenya’s goal of building a vibrant MSME sector that drives economic and social transformation.
BII, which operates as the UK government’s development finance institution, has backed several financial partnerships across Africa.
This latest deal is expected to help Family Bank scale up its reach among underserved clients while supporting the broader trade ecosystem.
With the new capital, the bank is expected to increase lending activity among SMEs, especially those struggling to manage operational costs due to dollar shortages — a challenge that has stalled the growth of many small businesses in recent months.
