The European Investment Bank’s development arm (EIB Global) and Family Bank are mobilising Ksh14.7 billion, Euros 100 million, in financing for businesses, with a focus on women-owned/led enterprises and youth entrepreneurs in the country.
EIB Global is providing a Euros 50 million credit line to Family Bank, which will match the sum in an agreement to expand loans for Kenyan small and medium-sized enterprises (SMEs) and Mid-Caps.
The financing deal, announced during the second edition of the European Union-Kenya business forum in Nairobi, seeks to bolster the working capital and investments of Kenyan SMEs and Mid-Caps active mainly in the trade and agriculture sectors. At least 50% of the financing will target businesses 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. “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.”
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In addition to the credit line, EIB Global will provide Family Bank with technical assistance to enhance its gender strategy and product offering. This includes a potential certification under a 2018 initiative called 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. “This partnership enables us to offer that holistic support.”
The agreement is part of the EU’s Global Gateway strategy to promote trade, manufacturing, agriculture, climate action and services, which are key priorities in Kenya. It also feeds into a European initiative called Investing in Young Businesses in Africa (IYBA) that operates across Africa with the goal of creating sustainable jobs and expanding business opportunities. The EIB currently chairs the IYBA.
“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. “Investing in women and youth entrepreneurs is not only the right thing to do but also the smart thing to do. It holds much promise to bring growth and prosperity to the Kenyan economy. This is a cause that is very important to us.”
European Commission Director for International Partnerships – Africa, Hans Stausboll, said this strategic partnership with the European Investment Bank unlocks vital financial resources for SMEs in Kenya, via Family Bank.
“This collaboration not only fuels female-led entrepreneurship and innovation but also spurs climate smart and sustainable value chains across the Kenyan landscape,” says Stausboll. “More in general, it contributes to Global Gateway strategy in Kenya across various economic sub-sectors including manufacturing, services, trade and competitiveness.”
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