Family Bank has received a Ksh 2.6 billion ($20 million) credit facility from British International Investment (BII) to expand lending to Kenya’s micro, small, and medium-sized enterprises (MSMEs). The funds will be split between trade financing and targeted support for women-led and agriculture-based businesses The announcement was made Tuesday, as the lender outlined plans to strengthen its support for a sector that contributes more than 30 percent of Kenya’s GDP and employs millions nationwide.
“This partnership gives us a critical tool to bridge liquidity gaps for small businesses,” said Family Bank CEO Nancy Njau. “SMEs are struggling with access to affordable financing, especially due to foreign currency constraints. This facility allows us to offer friendlier, more efficient solutions.”
Family Bank CEO Nancy Njau added that women entrepreneurs often face steeper challenges when trying to access credit and formal financing, and this partnership helps close that gap. “Our goal is to create an environment where every small business, regardless of its size or leadership, has a fair chance to succeed,” she said.
Half of the funds will be directed to agribusinesses, including enterprises involved in production, food processing, logistics, and value chain operations. The remaining portion will go toward financing women-led businesses under the 2X Challenge a global initiative that promotes gender-lens investing in developing countries.
BII’s East Africa Regional Director, Seema Dhanani, said the partnership aims to unlock capital for critical sectors that often face financial exclusion.
“In Kenya, MSMEs make up 98 percent of all businesses and play a major role in creating jobs for youth and women,” Dhanani said. “By working with Family Bank, we are helping small and mid-sized businesses especially those in agriculture and run by women access the capital they need to grow.”
The facility aligns with Family Bank’s five-year strategy to scale up its SME lending portfolio. The bank has prioritized expanding financial inclusion by offering credit products tailored to the needs of small businesses, which frequently cite lack of funding as a major barrier to growth.
The UK government-owned BII said the investment also supports its broader mission to promote sustainable economic development and job creation through partnerships with local financial institutions.
Family Bank, whose customer base is heavily composed of MSMEs, said the financing will help address gaps in working capital that have hindered business expansion and competitiveness, especially in rural and semi-urban areas.
The bank’s strategic focus includes strengthening access to financial services for underbanked groups, supporting key value chains, and building resilience in Kenya’s agriculture sector.
With agriculture employing more than 60 percent of Kenya’s workforce, the support is expected to boost productivity and income generation across the sector.
About the Author
