By KBC Reporter
Family Bank has secured financing from the European Investment Bank barely two weeks after receiving a similar facility from a Netherlands Financier – Oiko Credit International.
The Bank has received Ksh 3.33Billion (30Million Euros) to provide lower-cost long term loans to small and medium sized businesses in Kenya.
This is the second tranche by the European lender – with the first tranche of Ksh 2Billion having been secured two years ago.
The latest funding is expected to expand the SME portfolio of the Bank.
Family Bank Managing Director Peter Munyiri, “We are excited that EIB’s confidence in the Bank has enabled us to secure close to Ksh6Billion in two tranches – in only two years – being catalytic in mobilising significant amount of funds to help spur the SME sector.”
Saying the financing will not be spent on as working capital or to refinance existing debt, but will be a shot in the arm for the vibrant SME sector.
“Innovativeness on our part is required. Capacity to address the ever increasing financial needs of SMEs is critical hence our multi-pronged capital raising approach – partly for lending activities and also addressing our capacity to serve those needs”, said Munyiri.
Part of the funds are earmarked for lending activities as well as fuelling the aggressive expansion that has seen its branch network reach 91 with three branches having opened in the past two weeks including Wote, Kahawa West and Mlolongo