EIB Global and Kenya-based Family Bank team up in €100 million financing deal for country’s women and young entrepreneurs

• The financing targets expanding credit access to women owned/led businesses and youth entrepreneurs in Kenya
• EIB Global will advance €50 million, which Family Bank will match
• Part of EU’s Global Gateway strategy to promote trade, manufacturing, agriculture, climate action and services, which are key priorities in Kenya

The European Investment Bank’s development arm (EIB Global) and Kenya-based Family Bank are mobilising €100 million (14.7 billion Kenyan shillings) in financing for businesses, with a focus on women-owned/led enterprises and youth entrepreneurs in the country. EIB Global is providing a €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.

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% of the financing will target businesses owned or run by women while a further minimum of 30% will be extended to youth entrepreneurs. 

“SMEs represent over 80% 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 Officer Nancy Njau. “This partnership not only supports our 2025–2029 strategy to scale SME lending and deepen market segmentation but also enables us to better address the specific needs of SMEs across various value chains for sustainable growth and long-term value.”

In addition to the credit line, EIB Global will provide Family Bank with technical assistance to enhance its gender strategy and product offering. This includes a potential certification under a 2018 initiative called 2X Challenge launched by development and multilateral finance institutions to invest in women worldwide.

“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. It also feeds into a European initiative called Investing in Young Businesses in Africa (IYBA) that operates across Africa with the goal of creating sustainable jobs and expanding business opportunities. The EIB currently chairs the IYBA.

 “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. “Investing in women and youth entrepreneurs is not only the right thing to do but also the smart thing to do. It holds much promise to bring growth and prosperity to the Kenyan economy. This is a cause that is very important to us.”

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 (#EFSD+) is a testament to our commitment to fostering sustainable economic growth by empowering small and medium-sized enterprises (SMEs) in partner countries,” said European Commission Director for International Partnerships – Africa, Hans Stausboll. “Through this strategic partnership with the European Investment Bank, we're unlocking vital financial resources for SMEs in Kenya, via Family Bank. This collaboration not only fuels female-led entrepreneurship and innovation but also spurs climate smart and sustainable value chains across the Kenyan landscape. More in general, it contributes to Global Gateway strategy in Kenya across various economic sub-sectors including manufacturing, services, trade and competitiveness.”

Background Information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.  

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. EIB Global aims to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through offices across the world. High-quality, up-to-date photos of the organisation’s headquarters for media use are available here. 

About Global Gateway

The Global Gateway strategy is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. In a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions, together we aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.

The EU-Africa Global Gateway investment package consists of €150 billion in investments to help accelerate Africa’s digital and green transition as well as support sustainable jobs growth and stronger health systems. More information on the investment package as well as country specific flagships can be found here.

About Family Bank:

Family Bank is a financial institution that prides itself in growing a strong retail customer base, with a strong focus on SME banking, anchored on the positive transformation of people’s lives in Africa. Family Bank is the eighth-largest bank in Kenya, in terms of branch network with 95 branches across 32 counties. The Bank has over 1.2 million customers, 6,000 bank agents and 75,000 merchants across the country with total assets of KES.168.5 billion and a deposit base of KES 126.4 billion as of 31st December 2024.

A pioneer in digital banking innovation, Family Bank was the first in Kenya to introduce paperless banking through smart card technology, mobile banking, and PesaPap. It also made history as the first bank in Africa to launch the mVisa service, reinforcing its commitment to seamless and accessible financial solutions.

In 2024, Family Bank was recognized for its commitment to excellence, winning the Excellence in Customer Responsiveness award at the Innovation & Excellence Awards East Africa. The Bank was also voted the third-best overall bank and the best tier-two bank for the fifth consecutive year in the Kenya Bankers Association Customer Satisfaction and Digital Banking Experience Survey. Additionally, Family Bank emerged as the winner of the 2024 Banking on Women Awards and received the prestigious Service Excellence Award in the CX Social Impact & Sustainability category from the Institute of Customer Experience.

Previously, in 2021, Family Bank’s highly successful Corporate Bond Campaign, which achieved a 147.3% subscription rate, raising KES 4.42 billion through public placement, earned the Financial Communication Campaign of the Year and Overall Public Relations Campaign of the Year at the Public Relations Society of Kenya Annual Awards for Excellence.

Other notable accolades include Best-Performing Young Bankers in Africa at the 2023 Battle of the Banks Africa Competition and Best in Internal Customer Experience at the 2023 Service Excellence Awards. In 2022, Family Bank was named Bank of the Year for high-impact agricultural lending to SMEs by Aceli Africa. The Bank also received the Best SME Bank in Kenya award at the 2017 Banker Africa East Africa Awards, a prestigious initiative recognizing excellence in African financial institutions. Additionally, Family Bank was honored with the Think Business Fastest Growing Bank Award for three consecutive years (2013-2015) and was the 1st Runner-Up for Best Bank in Microfinance at the Think Business Awards in 2013 and 2014.