Family Bank signs Sh1.3bn AfDB facility to lend to SMEs
The facility will provide foreign currency financing to support the import trade needs of SMEs and businesses operating in manufacturing, agriculture, healthcare and renewable energy, as well as women-owned enterprises.
Family Bank has secured a Sh1.3 billion trade finance facility from the African Development Bank (AfDB) to boost lending to small and medium-sized enterprises (SMEs) and local corporations in Kenya. The agreement, signed on October 5, aims to provide foreign currency financing for SMEs operating in various sectors, including manufacturing, agriculture, healthcare, and renewable energy, as well as women-owned enterprises.
Alex Mubiru, AfDB East Africa Director General, stated that the facility underscores Family Bank's dedication to supporting local businesses and fortifying Kenya's financial ecosystem. The agreement will assist SMEs and local corporations in meeting their import trade finance requirements, thereby promoting intra-African trade and advancing the African Continental Free Trade Area (AfCFTA) objectives.
Family Bank's Chief Executive Officer, Nancy Njau, emphasized that the facility will enable the bank to expand financing to micro, small, and medium-sized enterprises (MSMEs), which constitute over 80 percent of its customer base. Njau highlighted that the facility will help address financing gaps that inhibit business growth, ultimately contributing to inclusive economic growth. The bank remains committed to ensuring that this financing translates into tangible opportunities for businesses.
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