The African Development Bank (AfDB) and Family Bank have signed a $10 million (Sh1.297 billion) trade finance facility aimed at expanding access to foreign currency and financing for Kenyan businesses. This partnership is expected to support small and medium-sized enterprises and local corporations in key sectors including manufacturing, agriculture, healthcare, renewable energy, and general commerce.
The financing is expected to help businesses meet their import needs, strengthen local value chains, and expand productive capacity, while also supporting women-owned and women-led enterprises. According to AfDB's Director General for East Africa, Alex Mubiru, the partnership demonstrates the bank's commitment to strengthening Kenya's financial ecosystem and supporting local businesses.
AfDB head of trade finance, Lamin Drammeh, stated that the facility would ease pressure on Kenyan importers and exporters while opening opportunities for sustainable economic activity. Drammeh also mentioned that the financing would contribute to addressing Africa's trade finance gap, estimated at more than $74 billion.
The facility is further expected to support intra-African trade and contribute to the implementation of the African Continental Free Trade Area, which seeks to increase trade among African countries. Family Bank Chief Executive Officer, Nancy Njau, noted that the facility would strengthen the bank's ability to scale lending to micro, small, and medium-sized enterprises, which account for more than 80 percent of its customer base.
Njau also stated that the bank would prioritize financing that translates into opportunities for businesses while promoting inclusive economic growth. The agreement comes as Kenyan businesses continue to face financing constraints, particularly in accessing foreign currency and trade finance needed to import goods, equipment, and raw materials.
Family Bank reported total assets of 238.9 billion shillings and deposits of 180.2 billion shillings as of June 2026. The bank's partnership with AfDB is expected to have a positive impact on the Kenyan economy, especially for small and medium-sized enterprises that have been struggling to access financing.
The trade finance facility is a significant milestone in the efforts to support Kenyan businesses and promote economic growth. With this partnership, Family Bank and AfDB aim to make a positive impact on the lives of many Kenyans and contribute to the country's economic development.
Key points
- The African Development Bank and Family Bank have signed a $10 million trade finance facility to support Kenyan businesses.
- The facility will support small and medium-sized enterprises and local corporations in key sectors including manufacturing, agriculture, and healthcare.
- The partnership aims to strengthen Kenya's financial ecosystem and promote inclusive economic growth.
