Family Bank has acquired Ksh 1.3 billion ($10m) facility from the BlueOrchard Microfinance Fund to boost its lending capacity to Micro, Small and Medium-sized Enterprises across all sectors in Kenya.
The latest latest facility brings the total credit the lender has secured from the BlueOrchard Microfinance Fund to Ksh 3.5 billion ($27m) to boost its MSME loanbook.
Family Bank Chief Executive Officer Nancy Njau said the strategic partnership will enable the bank to provide MSMEs with more accessible and sustainable financing, supporting business growth, innovation, and job creation in the country.
“As a Bank, the core of our approach is a strengthened commitment to supporting our customers especially across retail and SME sectors who form over 80pc of our customer base. Through this credit facility, we will be able to widen our capital base to support more MSMEs by extending credit at favourable terms,” said Njau.
In 2021, Family Bank received Ksh 2.2 billion ($17m) from funds managed by BlueOrchard to extend credit to SMEs and support the education sector. The bank says the funding was fully utilized and successfully repaid.
The credit facility targets to support small businesses to overcome inadequate finances and limited access which has been identified as one of the biggest factors inhibiting their scalability.
“We recognize that these enterprises are vital engines of economic growth, job creation, and innovation. We are delighted to partner again with Family Bank to deliver impact that truly matters for communities and future generations,” added Michael Wehrle, BlueOrchard Finance.
Official data indicate that SMEs form the backbone of Kenya’s economy contributing 40pc to the country’s economy and employing at least 80pc of the current workforce.
