African Development Bank and Family Bank sign $10 million trade finance line of credit for Kenya

The African Development Bank Group (AfDB) and Family Bank Limited have signed a USD 10 million Trade Finance Line of Credit to expand Kenyan businesses’ access to foreign-currency financing, according to a press release by the African Development Bank Group. The agreement was formalized at a signing ceremony held at the Bank Group’s East Africa regional office on 02 October. The facility is designed to channel trade financing to eligible small and medium-sized enterprises and local corporates across priority sectors. It also targets women-owned enterprises as a specific beneficiary group. The arrangement positions trade finance as a central tool for broadening Kenya’s business opportunities.

The facility will enable Family Bank to provide trade financing to eligible SMEs and local corporates operating in manufacturing, agriculture, health and renewable energy. Beneficiary businesses will be able to finance imports and obtain productive inputs through the line. It is also intended to help them participate more effectively in domestic, regional and international value chains. The partnership will contribute to the diversification of Kenya’s productive capacity. In addition, it will support intra-African trade under the African Continental Free Trade Area.

Speaking at the signing ceremony, Bank Group East Africa Director General Alex Mubiru described trade finance as a quiet engine of economic activity. He emphasized the practical impact expected from the facility on Kenyan enterprises.

“A line of credit becomes meaningful only when it becomes a line of opportunity for a business,” he said.

He added that through Family Bank’s local reach, the facility is expected to support enterprises that are producing, trading, creating jobs and strengthening Kenya’s value chains. The ceremony saw signed Line of Credit agreements exchanged between Mubiru and Family Bank Limited CEO Nancy Njau.

Family Bank Limited’s CEO Nancy Njau said the facility would advance the bank’s 2025-2029 strategy to expand access to tailored financing for business, including women-owned and women-led MSMEs. “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. She noted that MSMEs represent the dominant share of Family Bank’s clientele. Njau added that the bank is committed to ensuring that this financing translates into tangible opportunities for businesses. She also linked the facility to meaningful contributions to inclusive economic growth.

According to the Bank Group’s 2025 Trade Finance Report, the trade finance gap was estimated to be as much as USD 92 billion in 2024. SMEs are among the businesses most affected by the shortfall. The new line of credit directly targets this segment in Kenya. It brings together a continental financier and a domestic lender with wide local reach. The partnership underscores the role of trade finance in supporting enterprise growth and regional integration across Africa.