Family Bank is set to increase its lending to micro, small and medium-sized enterprises (MSMEs) after securing a Ksh 2.6 billion ($20m) facility from British International Investment (BII).
The lender targets to strengthen its trade finance using the facility which will extend business loans to small business in Kenya with the the other half used to fund women-led enterprises and agribusiness enterprises.
“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 innovate, friendly and cost-effective ways of doing business,” said Nancy Njau, Family Bank chief executive officer.
Njau said the facility is a 2X-qualified investment, part of a global initiative to drive women empowerment in developing economies.
The bank targets agribusiness enterprises engaged in agricultural production, processing, logistics, infrastructure, and broader value chain activities.
“In Kenya, MSMEs make up 98pc 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,” added Seema Dhanani, BII Regional Director, East Africa and Head of Office, Kenya.
BII which is the UK’s development finance institution and impact investor expects the facility to further strengthen its support towards MSMEs in Kenya to drive economic growth and spur job creation.
Family Bank says the facility is key in supporting its five-year strategy of enhancing SME lending as well as addressing financial access challenges faced by small businesses especially those led by women.
