Family Bank of Kenya has received a major financial boost of $20 million (approximately Sh2.6 billion) from British International Investment (BII), a UK-based development finance institution. The funding is aimed at supporting micro, small and medium-sized enterprises (MSMEs) in trade-related sectors across Kenya. The new facility is expected to ease access to financing for thousands of local businesses that are struggling with liquidity, especially in foreign currency.
The announcement was made this week by the bank’s Chief Executive Officer, Nancy Njau, who revealed that the deal is part of Family Bank’s wider five-year strategic plan that focuses on supporting SMEs with innovative and cost-effective financial solutions. According to Njau, more than 80 percent of the bank’s customers are SMEs, making this sector critical to the bank’s operations and the Kenyan economy.
“This facility comes at a time when many small businesses are struggling to access affordable foreign currency loans,” said Njau. “With SMEs forming over 80 per cent of our customer base, it is crucial for us to roll out innovative, friendly, and cost-effective ways of doing business.”
Family Bank said that a minimum of 75 per cent of the $20 million will be dedicated to supporting trade finance activities among MSMEs. The focus is not just on expanding credit, but on building sustainable businesses that can thrive in the competitive regional market.
Out of the total funding, at least 50 per cent has been earmarked for women-led businesses and enterprises involved in agribusiness. These include those active in agriculture production, food processing, storage, logistics, infrastructure development, and other related parts of the agricultural value chain. The bank said that this focus aligns with Kenya’s development priorities, especially in supporting women and farmers in rural areas.
BII, which is the UK government’s impact investor, has a long history of investing in businesses that drive development and economic growth in emerging markets. This latest partnership with Family Bank is designed to promote inclusive trade, create jobs, and strengthen Kenya’s position as a key trade hub in East Africa.
A statement from BII said the institution remains committed to providing long-term finance that helps local banks and financial institutions grow their reach, especially among underserved sectors such as SMEs and women-led enterprises.
“This partnership with Family Bank is about putting capital into the hands of businesses that need it most,” a BII spokesperson said. “By enabling small firms to grow, create jobs and invest in local supply chains, we are helping build a stronger, more resilient Kenyan economy.”
Kenya’s MSME sector plays a central role in the economy, contributing nearly 40 per cent of GDP and employing over 70 per cent of the working population. However, many of these businesses often lack access to formal credit, particularly when dealing with imports, exports, or suppliers that require foreign exchange.
Family Bank hopes to use the new BII funding to unlock trade financing opportunities that will help small businesses expand their market reach, boost competitiveness, and generate more revenue. The bank also plans to introduce more flexible lending products under the program, including loans tailored for agribusinesses and women entrepreneurs.
The partnership also comes at a time when the Kenyan shilling has experienced volatility, and many SMEs have complained of difficulty accessing affordable forex for international transactions. By easing these foreign currency constraints, Family Bank believes that it can help SMEs operate more efficiently and competitively in both local and regional markets.
This is not the first time Family Bank has attracted funding from international partners. In recent years, the bank has positioned itself as a key player in supporting MSME growth through partnerships with institutions such as the African Guarantee Fund (AGF), the International Finance Corporation (IFC), and other development financiers.
The bank says it will continue to explore new ways to bring global finance into Kenya’s SME sector, and sees the BII deal as a big step forward in that journey.
