Boniface Kanyamwaya, a journalist at TUKO.co.ke, has more than 10 years of experience in finance, economics, business, markets, and aviation, providing insights into Kenyan and global trends.

Family Bank has received KSh 7.2 billion in a loan from the European Investment Bank Global for onward lending to women-owned enterprises and youth in the country.

Under the deal, the European lender will provide KSh 7.3 billion to Family Bank, which will match the sum to hit KSh 14.7 billion in a deal to expand loans for Kenyan small and medium-sized enterprises.

The financing deal, which was announced during the second edition of the European Union-Kenya business forum in Nairobi, seeks to boost the working capital and investments of Kenyan Small and Medium Enterprises (SMEs) in the trade and agriculture sectors.

The agreement will see at least 50% of the financing target business owned or run by women, while a further minimum of 30% will be extended to youth entrepreneurs.

“SMEs represent over 80% of our customer base. As a result of our growth efforts, our market revenue from this segment continues to increase, further underscoring the sector’s strong growth potential,” said Family Bank Chief Executive Officer Nancy Njau in a statement which was seen by on Monday, May 12.

“This partnership not only supports our 2025–2029 strategy to scale SME lending and deepen market segmentation but also enables us to better address the specific needs of SMEs across various value chains for sustainable growth and long-term value.”

The funding agreement will see EIB Global provide Family Bank with technical assistance to enhance its gender strategy and expand its product offering.

This includes a potential certification under a 2028 initiative dubbed the 2X Challenge, launched by development and multilateral finance institutions to invest in women worldwide.

“We recognise that beyond access to financing and investment opportunities, small businesses, especially those led by women, also need education, information, and networking opportunities with like-minded enterprises,” said Njau in the statement.

The agreement is part of the EU’s strategy to promote trade, manufacturing, agriculture, climate action, and services.

It also supports a European initiative, Investing in Young Businesses in Africa (IYBA), which operates across Africa.

“The financing partnership we now have with Family Bank will inject much-needed capital into Kenya’s private sector to support businesses and create employment,” said EIB Vice-President Thomas Ostros in the press statement.

In other news, on Friday, May 9, Equity Group received KSh 64 billion in guarantee funding from the Africa Guarantee Fund for onward lending to Micro-Small and Medium Enterprises (MSMEs).

The new funding will enable Equity Group to expand its lending activities to MSMEs, unlocking KSh 129 billion in financing for these businesses.

This is not the first time the lender has received credit support from AGF. In 2020, the bank received KSh 9.7 billion.

Source: TUKO.co.ke