Family Bank Secures $20 Million from BII to Boost MSME Trade Financing in Kenya

Family Bank has signed a landmark agreement with British International Investment (BII), the UK’s development finance institution and impact investor, to unlock a USD 20 million (KES 2.6 billion) trade finance facility aimed at enhancing access to financing for micro, small and medium-sized enterprises (MSMEs) in Kenya.

The facility is set to increase trade-related financing opportunities for MSMEs, with a strong focus on women-led businesses and agribusinesses across the country. At least 50% of the funds will directly support enterprises involved in agricultural production, processing, logistics, and value chain development, contributing to inclusive economic growth. Notably, the facility qualifies under the 2X Challenge – a global initiative promoting gender-lens investing in emerging markets.

Family Bank CEO Nancy Njau emphasized the critical need for such partnerships, noting that MSMEs, which make up over 80% of the bank’s clientele, continue to face challenges accessing affordable foreign currency financing.

“SMEs in Kenya are grappling with foreign currency liquidity constraints, which hinder their ability to transact competitively. Through this facility, we aim to offer more innovative and cost-effective financial solutions tailored to their unique needs,” Njau stated.

She added that the partnership aligns with the bank’s five-year strategic plan to scale up SME lending and improve financial inclusion, especially among underserved segments such as women-led businesses and agriculture enterprises.

BII’s Regional Director for East Africa and Head of Office, Kenya, Seema Dhanani, lauded the deal as a step forward in empowering the MSME sector, which represents 98% of all businesses in Kenya.

“Our collaboration with Family Bank is focused on providing essential working capital and trade finance to agri-focused and women-led MSMEs. These enterprises are not only economic engines but also key to inclusive job creation, especially for women, youth, and marginalized communities,” Dhanani said.

The funding is expected to strengthen Kenya’s trade ecosystem, promote value chain development, and help bridge existing financing gaps for critical sectors, ultimately contributing to the country’s broader socio-economic transformation goals.