corporate_banner_en

Family Bank changes lives in Kenya via Microfinance

The blog
Media information
All press releases
All other news
Press contacts
Events
All events
Business events
Institutional events
Newsletter
Publications
All publications
General
Reports
Information
Human resources
Strategies & procedures
Thematic
Geographical
Technical studies
Ex-post evaluation
Capital markets
Economic research
Ordering a publication
EIB Historical Archives Policy
EFSI Scoreboards
Help
Search criteria - General principles
How to search in the register
Result page
Latest documents
Basic search
Public register
Latest documents
Basic search
Frequently asked questions
Help
Search criteria - General principles
How to search in the register
Result page
Request a document
Other public registers
Picture library
News in pictures
Management Committee's Photos
Werner Hoyer
Dario Scannapieco
Ambroise Fayolle
Andrew McDowell
Vazil Hudák
Alexander Stubb
Emma Navarro
The EIB services
Building
Archives
Former Presidents
Former Vice-presidents
from left to right: Mustafa Abdel-Wadood, CEO,Abraaj Capital Limited, Philippe de Fontaine Vive Curtaz,Vice President, EIB and H.E. Eng. Yarub Qudah, CEO of JEDCO
Greater Manchester Metrolink extension
Mr Olaf Scholz, Mayor of Hamburg
Fritz Vahrenholt, Chief Executive Officer, RWE Innogy GmbH, Germany, Karina Veum, Senior Researcher, Energy Research Centre of the Netherlands, Alistair Buchanan, Group Chief Executive, OFGEM, UK regulator of gas and electricity markets and Frauke Thies, EU Energy Policy Coordinator, Greenpeace
Mr Matthias Kollatz-Ahnen, Vice-President of the EIB
from left to right:Jörg Vogt, CFO, Trianel, Germany (Project: Borkum West II Offshore Wind Park), Pierre Lestienne, CFO, C-Power, Belgium (Project: C-Power near Ostend) and Georg Friedrichs, Vice-President, Head of Offshore Wind Projects, Vattenfall, Germany (Project: Thanet Offshore Wind Farm)
from left to right: Mr Kevin Smith, Director Wind Energy, Det Norske Veritas, Norway, Mr Frank V.Nielsen; Chief Technology Officer, LM Wind Power, Denmark and Mr Konstantin Staschus, Secretary General, European Network of Transmission System Operations for Electricity (ENTSO-E)
from left to right: Mr Rober Harrabin, Environmental Analyst, BBC and Mr Hans-Jörg Bullinger, President, Fraunhofer-Gesellschaft of Germany
Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division, Mr F. de Paula Coelho, Director of the ALA Department of the EIB and Mr Christophe Nègre, Deputy Head of Division, Legal Department of the EIB
From left to right: Mr. de Paula Coelho, Director of the Asia Latin America Department and Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division
From left to right: Mr. de Paula Coelho, Director of the Asia Latin America Department of the EIB and Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division
Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division
Group picture of the signature Brazil Climate Change Mitigation
Picture of all the participants at the signature EFL loan for SMEs and Mid-Caps III
FROM LEFT TO RIGHT: Mr ANDRZEJ KRZEMINSKI President of the Management Board- EFL and Mrs FÜRSTENBERG-LUCIUS, Director EIB
FROM LEFT TO RIGHT: Mr ANDRZEJ KRZEMINSKI President of the Management Board- EFL and Mr Mariusz KOLWAS, Vice-President of the Management Board - EFL
FROM LEFT TO RIGHT: Mr Andrzej KRZEMINSKI President of the Management Board- EFL Mrs Anita FÜRSTENBERG-LUCIUS, Director EIB Mr Anton ROP, Vice-President of the EIB
FROM LEFT TO RIGHT: Mr Andrzej KRZEMINSKI President of the Management Board- EFL Mrs Anita FÜRSTENBERG-LUCIUS, Director EIB, Mr Anton ROP, Vice-President of the EIB
FROM LEFT TO RIGHT: Mr Andrzej KRZEMINSKI President of the Management Board- EFL Mrs Anita FÜRSTENBERG-LUCIUS, Director EIB Mr Anton ROP, Vice-President of the EIB
FROM LEFT TO RIGHT: Mr Zygmunti TRYBKA, Director of the Financing Department EFL and Mr Piotr KOZIOL, Director of the Legal Department EFL
Group picture of the signature EFL Loan for SMEs and Mid-Caps III
from left to right:Mrs Flavia Palanza, Associate Director for Central and Eastern Africa, EIB, Mr. Jack Nkusi Kayonga, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director responsible for Africa, Caribbean and Pacific operations.
from left to right: Mr. Jack Nkusi KAYONGA, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director of the Central and Eastern Africa, Pacific Department of the EIB
Mr. Jack Nkusi KAYONGA, Chief Executive Officer of the Rwanda Development Bank
from left to right:Mrs Flavia Palanza, Associate Director for Central and Eastern Africa, EIB, Mr. Jack Nkusi Kayonga, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director responsible for Africa, Caribbean and Pacific operations.
from left to right:Mrs Flavia Palanza, Associate Director for Central and Eastern Africa, EIB, Mr. Jack Nkusi Kayonga, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director responsible for Africa, Caribbean and Pacific operations.
J.A.Mannai, Président du Fonds Monétaire Arabe; P.Maystadt, Président de la BEI; A.M.Ali Al-Madani, Président de la Banque Islamique de Développement; F.Baroin, Ministre de l'Economie, des Finances et de l'Industrie; D.Kaberuka, Président de la Banque Africaine de Développement; C.Lagarde, directrice générale du FMI
Photo de la signature
Photo de groupe de la signature
from left to right: Founders and biggest investors:
From left to right: all investors+Fund Manager:
Mr Anton Rop, Vice President of the European Investment Bank
de gauche à droite: M. Othman Ben Arfa, PDG de la STEG, M. Philippe de Fontaine Vive, Vice-président de la BEI et M. Mohamed Nouri Jouini, Ministre du Développement et de la Coopération Internationale
de gauche à droite: M. Othman Ben Arfa, PDG de la STEG et M. Philippe de Fontaine Vive, Vice-président de la BEI
de gauche à droite: M. Othman Ben Arfa, PDG de la Société Tunisienne de l'Electricité et du Gaz , M. Philippe de Fontaine Vive, Vice-président de la BEI et M. Mohamed Nouri Jouini, Ministre du Développement et de la Coopération Internationale
De gauche à droite:
Closing Ceremony Rural Impulse Fund II SA, SICAV-SIF; Luxembourg 1st June 2010
Closing
de gauche à droite: M.Carlos Da Silva Costa ,Vice Président de la BEI et M. Valls i Riera, Président de l'Autoridad Portuaria de Barcelona.
de gauche à droite: Carlos da Silva Costa, vice-président de la BEI et Ignacio Galán, Président d'Iberdrola
M. Philippe Maystadt, Président de la BEI, S.E.M. Premier Ministre de la Serbie et M. Dario Scannapieco, Vice-Président de la BEI à la signature de contrats
M. Philippe Maystadt, Président de la BEI et S.E.M. Mirko CVETKOVIC, Premier Ministre de la République de Serbie à la signature du livre d'or
Mr. I Dalianis, Financial Manager of Symetal ,Mr. K Kontos, General Manager of Symetal , Mr P Sakellaris Vice President of the EIB, Mr. D Kyriakopoulos, Executive Vice President of Elval and Mr. L Varouchas, General Manager of Elval
Mr P.Sakellaris, Vice President of the EIB and Mr D. Kyriakopoulos, Executive Vice President of Elval
Mr P. Sakellaris, Vice President of the EIB and Mr D.Kyriakopoulos, Executive Vice President of Elval
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
The Marseille Center for Mediterranean Integration is launched today
Le Centre de Marseille pour l’Intégration en Méditerranée est inauguré aujourd’hui
Photos
Session on "Modelling Cities and Urban Dynamics" hosted by the EIB-University Action Programme
Projects
Video library
All videos
Podcasts
Open learning
Contact

Family Bank changes lives in Kenya via Microfinance

    •  Display in:
    • de
    • en
    • fr
  • Available in: de en fr

For Family Bank in Kenya, banking is more than money – it is a calling and a matter of improving lives.  Since 1984 Family Bank has been enabling people to create and sustain wealth by providing access to flexible, affordable financial services.  Thanks to a key partnership with the EIB more resources have been made available for Family Bank. In an interview with the EIB Family Bank’s Managing Director and CEO, Peter Munyiri, talks about these success stories.

How does Family Bank lead positive change in people’s lives?

The contribution Family Bank makes is truly by bringing improvements to society at large. Currently we have 1.47m clients, mainly rural dwellers or are living in urban slums, all with low income levels. Their primary concern is how to put basic provisions on the table for their families. Although they are struggling, somehow they find the underlying strength wanting to move upwards in life. Through financial support they have the possibility to change their social status, build decent lives and provide their children with basic medical care, food, clothes and education.

What products does Family Bank offer to their clients?

We customise our product offering. We sit with our clients and get to know them to be able to create loan facilities on the basis of their needs. In some cases a client starts with a small loan facility and progressively they move to other, larger, longer-term facilities. On other occasions, we see the opportunity for collaboration and we bring two entrepreneurs together to help them build their businesses and they act as co-guarantors for each other.

How do you ensure that clients repay their micro-loans?

Our risk-assessment is really driven through the branches and the relationship officers. Our structure only accepts repayment via bank accounts and not via repossession. If a client buys a cow, the branch managers do not sell the cow to recover losses. We have to be comfortable with the potential loss from the first micro-loan. Slowly the loan size builds up, as does the relationship. Our average loan size is around EUR 400 and by the time a customer is ready to borrow a higher amount, such as EUR 1000, they will have such a good track record with us that we can be sure that the risk is low.

Impact funding and corporate social responsibility are very important to Family Bank. Can you tell more what that means for Family Bank?

Our impact is very significant, especially when you consider certain key target groups. Take women’s groups for example. We have lent to over 1000 women’s groups and many of our individual customers are also women. Youth is another impact area. These are people with ideas, who want to expand their horizons and who are at the heart of their community. The impact of lending to women and the youth translates into employment, which in turn creates financial freedom and empowerment. It is this chain of empowerment that is most significant in terms of our impact.

The relationship with your clients clearly means a lot to Family Bank. Has the relationship with the EIB helped to reinforce this?

Our relationship with the EIB is very valuable to Family Bank. Firstly, the long term funding by the EIB creates turnaround and ensures sustainability.  Secondly, the partnership with the EIB has brought important advantages to Family Bank. It has strengthened our bank profile, our balance sheet is more matched, and for the customer there are more funds available to roll over and continue our financing programmes with loans that have repayment terms of 5, 6 and even 10 years.

Finally, what does the future hold for Family Bank?

We have a great growth plan. By the end of 2015 we will have broken through the threshold of over 100 branches. Already in 2014 we will close the year with around 85 branches.  In addition, our loans to companies increase every year, in 2013 we lent KES 27.9bn [EUR 250m]. And for this year from December 2013 to August 2014 our net loans have grown over KES 6.7bn [EUR 60m]; an incredible achievement that will spread across our network of branches. In terms of employment we have gone from 700 to 1567 Family Bank employees in the last three years. We try to employ graduates to create opportunities for them to build careers and implement their knowledge. In turn this means we can expand the business lives of SMEs and microenterprises. And all of this makes us feel happier.

Family Bank Kenya: Testimonials

Daniel Kasimu improves the quality of his products thanks to Family Bank loans

32 year old Daniel Kasimu has been operating his maize milling firm for the past six years together with his wife who assists him in the daily activities of the business. A client at Family Bank for five years now, he has been able to boost his business through various loans going from KES 100 000 [EUR 890] to KES 650 000 [EUR 5 800].

Daniel’s business targets individuals in Machakos, a city located 63 kilometres southeast of Nairobi, especially low income earners from the Kariobangi slum. Occasionally he also receives orders from local schools and government Institutions. His business employs five workers on a permanent basis and has a monthly turnover of KES 600 000 [EUR 5 300].

“My main challenge is to meet the cost of electricity and source affordable raw materials. Thanks to the financing from Family Bank, I manage to buy in bulk to reduce the cost of production” Daniel said.  Currently, Family Bank is financing his fifth KES 650 000 [EUR 5 800] loan which enabled him to purchase a destoner machine.  And Daniel does not intend to rest on his laurels: “I followed a number of courses in food production and business management in order to strengthen my business further. I am also looking forward to receiving a KES 1m [EUR 89 000] funding to brand my products and purchase more milling machines.”




 Print