The African Development Bank (AfDB) and Family Bank have signed a $10 million (about Sh1.3 billion) trade finance facility to expand access to foreign currency and financing for Kenyan businesses, particularly small and medium-sized enterprises (SMEs) and local corporates.
The facility will provide much-needed foreign currency to support import and export activities while increasing financing for businesses in manufacturing, agriculture, health, renewable energy and other productive sectors.
The financing is also expected to help women-owned businesses access trade finance, deepen local and regional value chains and support the expansion of productive capacity in Kenya.
Speaking after the signing, AfDB Director General for the East Africa Region Alex Mubiru said the partnership would help address critical gaps in trade finance while strengthening Kenya’s financial ecosystem.
The facility comes as businesses continue to require access to foreign currency and financing to meet import needs and participate in regional and international trade.
“By addressing critical trade finance gaps in agriculture, manufacturing, energy, and general commerce, the partnership will expand access to financing that supports the country’s growing import needs,” Mubiru said.
AfDB Head of Trade Finance Lamin Drammeh said the financing would ease pressure on Kenyan importers and exporters while opening up opportunities for sustainable economic activity.
“Today’s signing is timely and significant, as it will ease the pressure on exporters and importers in Kenya, help unlock new opportunities for sustainable economic activity and ultimately reduce Africa’s trade finance gap,” Drammeh said.
The African Development Bank estimates Africa’s trade finance gap at more than $74 billion, with limited access to trade finance continuing to constrain businesses seeking to expand across borders.
The facility will specifically support the import trade finance needs of SMEs and local corporates, while also promoting intra-African trade under the African Continental Free Trade Area (AfCFTA).
For Family Bank, the funding is expected to strengthen its ability to extend tailored financing to MSMEs, including women-owned and women-led businesses.
Family Bank Chief Executive Officer Nancy Njau said MSMEs account for more than 80 per cent of the bank’s customer base, making increased access to financing critical to its lending strategy.
“As we execute our 2025–2029 strategy, we remain focused on expanding access to tailored financing for businesses, including women-owned and women-led MSMEs,” Njau said.
She added that the facility would strengthen the bank’s capacity to scale up lending to MSMEs while addressing financing gaps that continue to constrain business growth.
The partnership is expected to enable Kenyan businesses to access financing for imports and trade-related transactions, while supporting the development of value chains and increasing participation in intra-African trade.
