Family Bank has signed a Sh1.3 billion ($10 million) trade finance facility with the African Development Bank (AfDB). The money gives the lender foreign currency to back importers who buy raw materials, machinery and stock from abroad.
What the facility pays for
The facility arrives in foreign currency, and Family Bank will lend it to small and medium enterprises (SMEs) and local corporates. It targets businesses in manufacturing, agriculture, healthcare and renewable energy, as well as women owned enterprises.
The funding matters because an importer must pay a foreign supplier in dollars, often before the goods ship. A bank can only lend the foreign currency it holds. More dollars on Family Bank’s books mean more import orders its customers can finance.
Why MSMEs sit at the centre
Micro, small and medium enterprises (MSMEs) account for more than 80 percent of Family Bank’s customers. Chief Executive Officer Nancy Njau said the facility lifts the bank’s capacity to lend to them.
“This facility strengthens our capacity to scale up lending to MSMEs, which form over 80% of our customer base, while addressing financing gaps that continue to constrain business growth,” Njau said.
Small firms face the widest gap. The AfDB says SMEs find trade finance harder to secure than multinationals and large local corporates, and it has put Africa’s overall trade finance gap at about $82 billion.
A link to intra African trade
AfDB East Africa Director General Alex Mubiru said the agreement backs local businesses and strengthens Kenya’s financial system.
He added that the facility supports trade between African countries and helps carry out the African Continental Free Trade Area (AfCFTA) agenda.
Built on a 2023 approval
The signing follows an AfDB board decision in March 2023 to approve a $30 million Trade and SME Finance Facility for Family Bank. That package had three parts of up to $10 million each:
- A short term trade finance line.
- A transaction guarantee covering up to 100 percent of non payment risk for banks that confirm letters of credit issued by Family Bank.
- A medium term line for SMEs in health, renewable energy and agriculture.
The Sh1.3 billion now signed matches the size of one of those parts.
A lender growing into the role
Njau joined Family Bank in 2002 as a graduate clerk and took over as CEO in January 2024. Under her 2025 to 2029 strategy, the bank wants to become the “Preferred Bank for Biashara.” Its results show the push.
| Measure | H1 2026 | Change |
|---|---|---|
| Profit after tax | KES 3.7 billion | +62% |
| Total assets | KES 238.9 billion | +24% |
| Customer deposits | KES 180.2 billion | +20% |
The bank disbursed KES 35.6 billion to retail and MSME customers and KES 15.2 billion to commercial customers in the half year. It listed on the Nairobi Securities Exchange in June 2026. Earlier, it signed a €50 million agreement with the European Investment Bank to finance women, youth and SMEs.
What to watch next
The test comes in the loan book. Full year results will show whether the dollars reach importers in import loans, and whether Family Bank’s trade finance lending grows alongside its MSME base.
