Family Bank, a Kenyan lender, has secured a $10 million financing from the African Development Bank (AfDB) to increase lending to the country's importers and exporters. The facility will enable the bank to access foreign currency from the AfDB to support small and medium-sized enterprises (SMEs) and local corporates. These businesses, particularly in the manufacturing, agriculture, healthcare, and renewable energy sectors, often face challenges in accessing affordable trade finance.
The financing will target women-owned businesses and help address the financing gaps that constrain business growth. Family Bank's chief executive, Nancy Njau, noted that the facility strengthens the bank's capacity to scale up lending to MSMEs, which form over 80 percent of its customer base. This move is expected to unlock new opportunities for sustainable economic activity and reduce Africa's trade finance gap.
Kenyan importers and exporters often face difficulties in accessing affordable trade finance, including foreign currency needed to settle transactions. The AfDB's head of trade finance, Lamin Drammeh, stated that the financing will ease the pressure on exporters and importers in Kenya. He also noted that it will help reduce Africa's trade finance gap, currently estimated at more than $74 billion.
Family Bank was established in 1984 and became a fully-fledged commercial bank in 2007. The bank recently listed on the Nairobi Securities Exchange on June 23, 2026, at Sh18 per share. As of Monday afternoon, its shares were trading at Sh27.95. The bank's listing on the exchange is expected to enhance its visibility and credibility in the market.
The AfDB is a major financier of Kenyan banks, providing credit to fund their loans to local and regional businesses. The loans are usually provided over the medium to long term in foreign currencies, helping banks to overcome the challenge of relying heavily on short-term deposits to fund multi-year loans. This partnership is expected to have a positive impact on Kenya's economy.
Family Bank's partnership with the AfDB is a significant development in Kenya's banking sector. The bank's focus on supporting SMEs and women-owned businesses aligns with the AfDB's goals of promoting economic growth and reducing poverty in Africa. This collaboration is expected to have a positive impact on the lives of many Kenyans.
The financing facility is a testament to the AfDB's commitment to supporting trade finance in Africa. The bank's efforts to address the trade finance gap in Africa are expected to have a positive impact on the continent's economic growth and development.
Key points
- Family Bank secures $10 million from AfDB to finance trade for Kenyan importers and exporters.
- The financing will target women-owned businesses and help address financing gaps that constrain business growth.
- The partnership is expected to have a positive impact on Kenya's economy, promoting economic growth and reducing poverty.
