Family Bank has secured a USD 20 million (approximately Ksh. 2.6 billion) trade finance facility from British International Investment (BII), the UK’s development finance institution and impact investor. The Family Bank BII Facility is aimed at expanding access to financing for Micro, Small, and Medium-sized Enterprises (MSMEs) in Kenya’s trade-related sectors.
The partnership between Family Bank and BII responds to longstanding challenges faced by MSMEs, which include limited access to affordable, foreign currency-denominated financing. This constrains their ability to grow, trade, and compete locally and globally. MSMEs account for over 98% of all businesses in Kenya, contributing around 40% to the country’s GDP and employing a significant portion of the population, particularly women, youth, and vulnerable groups. Notably, over 80% of the Family Bank customer base comprise of SMEs.
A minimum of 75% of the family bank trade finance facility with BII Facility funds will be dedicated to financing trade-related activities by MSMEs, particularly in agriculture, logistics, and infrastructure. At least 50% of the funds will be channeled toward women-led businesses and agribusinesses, which face persistent credit access challenges.
The facility qualifies as a 2X investment under a global initiative launched at the 2018 G7 Summit to mobilize capital for businesses that promote women’s economic empowerment in developing markets. By prioritizing lending to women-owned enterprises, the facility seeks to address gender gaps in financial access, expand women’s leadership, and create more inclusive employment and financial ecosystems. This supports the objectives of United Nations Sustainable Development Goal 5 on gender equality.
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The support to women-led businesses and agribusinesses complements the family bank’s existing Queen Banking proposition launched in 2023, backed by the African Guarantee Fund’s Affirmative Finance Action for Women in Africa (AFAWA) program. Through Queen Banking, Family Bank provides loans of up to Ksh. 7 million (secured and unsecured), alongside investment, insurance, and advisory services designed for women entrepreneurs.
Agribusinesses, another key target group under the facility, are considered a cornerstone of Kenya’s economic structure. Despite their potential, enterprises across the agricultural value chain, from input suppliers and producers to processors and distributors, face substantial financing gaps. Sub-Saharan Africa alone has an estimated USD 74 billion shortfall in agribusiness financing. The Family Bank BII Facility aims to bridge part of this gap by offering MSMEs in agriculture the working capital and trade finance they need to improve productivity, invest in climate-resilient practices, and create rural jobs.
The facility also aligns with regional trade ambitions, including the African Continental Free Trade Area (AfCFTA), by boosting liquidity for MSMEs engaged in intra-African commerce. With Kenya’s growing emphasis on exports, regional supply chains, and economic resilience, trade finance for small businesses is expected to play a major role in enhancing competitiveness.
Beyond immediate financing, the Family Bank BII Facility partnership comes at a time when the bank is pursuing a larger transformation agenda. In May 2025, Family Bank announced its intention to list on the Nairobi Securities Exchange (NSE) by 2026 as part of its ambition to become a tier-one bank by 2029. The BII facility strengthens its balance sheet and capacity to grow its lending portfolio in key sectors. Chairman Lazarus Muema has indicated that the bank is exploring the formation of a holding company to support potential regional expansion beyond Kenya’s borders.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.