EIB, Family Bank to raise Sh14.7bn for businesses led by women, youth

The European Investment Bank’s development arm (EIB Global) and Family Bank are mobilising Sh14.7 billion (Euros 100 million) to finance women-owned and led businesses, and youth entrepreneurs in the country.

Each of the institutions will contribute Sh7.35 billion (Euros 50 million). “EIB Global is providing  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,” noted a statement from the bank.

The financing accord, 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 per cent of the financing will target businesses owned or run by women while another minimum of 30 per cent will be extended to youth entrepreneurs.  “SMEs represent over 80 per cent 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 Nancy Njau.

“This partnership 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.

“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.  “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.

 The agreement signed between EIB Global and Family Bank represents the fourth time that the banks are partnering. “European Fund for Sustainable Development Fund Plus is a testament to our commitment to fostering sustainable economic growth by empowering small and SMEs in partner countries,” said European Commission Director for International Partnerships – Africa, Hans Stausboll.