Family Bank Secures $20 Million Trade Finance Deal with British International Investment
Family Bank has signed a significant trade finance agreement worth USD 20 million (KES 2.6 billion) with British International Investment (BII), the UK government’s development finance institution and impact investor. The facility is aimed at bolstering access to finance for micro, small, and medium-sized enterprises (MSMEs), with a strong focus on women-led businesses and agribusiness ventures across Kenya.
The partnership comes at a critical time when MSMEs—responsible for 98% of all businesses in Kenya—continue to face challenges accessing affordable credit, especially in the context of foreign currency liquidity constraints. Family Bank, which serves more than 1.2 million customers and positions MSMEs as a key component of its business, sees this facility as instrumental in unlocking growth for enterprises in trade, agriculture, and related sectors.
“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,” said Nancy Njau, CEO of Family Bank.
She added: “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% of our customer base, it is crucial for us to roll out innovative, friendly, and cost-effective ways of doing business.”
At least half of the trade finance facility will be earmarked for women-led enterprises and agribusinesses—including those involved in farming, food processing, logistics, infrastructure development, and value chain activities. The investment qualifies under the 2X Challenge, a global initiative aimed at advancing women’s economic empowerment in developing economies.
British International Investment, formerly CDC Group, is the UK’s primary vehicle for development finance. The organisation channels capital into businesses in emerging markets to address systemic challenges such as poverty and climate change, while helping countries reduce dependence on foreign aid.
“In Kenya, MSMEs are critical for employment—particularly for youth, women, and vulnerable groups,” noted Seema Dhanani, BII’s Regional Director for East Africa and Head of Office in Kenya. “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. This is aligned with our support to Kenya’s goal of building a vibrant MSME sector that drives economic and social transformation.”
Family Bank, Kenya’s eighth-largest bank by branch network, continues to strengthen its footprint across the country, with 96 branches in 32 counties. As of December 31, 2024, the bank reported total assets of KES 168.5 billion and a deposit base of KES 126.4 billion. Known for its innovation in digital banking, Family Bank has led the way with services such as paperless banking, mobile banking via PesaPap, and was Africa’s first bank to launch mVisa.
The funding from BII marks a significant step in Family Bank’s strategy to deepen its support for MSMEs and reinforce Kenya’s broader economic transformation agenda.
