The European Investment Bank’s development arm, EIB Global, has partnered with Kenya’s Family Bank to roll out a €100 million ($111 million), (KES 14.7 billion) financing package aimed at boosting access to credit for women-led businesses and youth entrepreneurs. Under the agreement, EIB Global will contribute €50 million ($55 million), with Family Bank matching the amount to support small and medium-sized enterprises (SMEs) and mid-sized companies across Kenya. The deal was formally announced during the second EU-Kenya Business Forum held in Nairobi.
Strategic Focus on Trade and Agriculture Sectors
The financing facility is primarily directed at enterprises operating in the trade and agriculture sectors—two critical areas for Kenya’s economic development. At least half of the funds will be allocated to businesses owned or led by women, while a minimum of 30% will support ventures driven by youth. The initiative aligns with Kenya’s broader development goals and the EU’s Global Gateway strategy, which promotes inclusive growth across key sectors such as trade, manufacturing, and climate resilience.
Strengthening SME Lending Through Partnership
Family Bank CEO Nancy Njau emphasized that SMEs represent over 80% of the bank’s customer base and are central to its 2025–2029 growth strategy. She noted that the bank’s continued expansion in SME lending underscores the sector’s importance to sustainable growth and job creation. Njau also highlighted that this partnership would enhance Family Bank’s ability to address sector-specific challenges and provide value chain support for long-term impact.
Technical Support to Advance Gender Strategy
Beyond financial assistance, EIB Global will provide Family Bank with technical expertise to bolster its gender-focused product offerings. This support includes guidance on qualifying for the 2X Challenge, a global initiative aimed at mobilizing capital for projects that empower women. The initiative acknowledges that female entrepreneurs often face structural barriers beyond financing, such as limited access to business networks and mentorship opportunities.
Catalyzing Youth Innovation and Employment
The deal feeds into the broader Investing in Young Businesses in Africa (IYBA) initiative, chaired by the EIB, which works to create sustainable jobs and entrepreneurial opportunities across the continent. By channeling capital into youth-led businesses, the agreement aims to nurture innovation, unlock new markets, and contribute to the reduction of unemployment among young Kenyans. According to EIB Vice-President Thomas Östros, investing in women and youth is both a moral and economic imperative that holds immense potential for Kenya’s future.
Part of the EU’s Global Gateway Strategy in Africa
This collaboration falls under the EU’s flagship Global Gateway initiative, which seeks to mobilize €300 billion in global investments by 2027, with €150 billion earmarked for Africa. According to Hans Stausboll, European Commission Director for International Partnerships – Africa, the deal highlights Europe’s commitment to fostering sustainable development through female-led innovation and climate-resilient value chains. By unlocking financing for SMEs, the EU aims to support key sectors such as services, manufacturing, and competitiveness while reducing reliance on external aid.
Family Bank’s Track Record of Innovation and Impact
Family Bank has established itself as a major player in Kenya’s financial landscape, with over 1.2 million customers and a widespread branch and agent network. Known for pioneering digital banking services like mVisa and PesaPap, the bank has garnered numerous accolades for customer service, SME support, and innovation. In recent years, it has also excelled in mobilizing capital through successful bond issues and has been recognized for its contributions to women’s banking and agricultural finance.
The EIB Global-Family Bank agreement represents the fourth such collaboration between the two institutions, marking a deepening of their shared commitment to inclusive finance. By focusing on gender equity and youth empowerment, the initiative aims to unlock economic potential and promote sustainable entrepreneurship across Kenya. As Kenya continues to position itself as a hub for innovation and development, this financing partnership is poised to deliver significant impact for underserved segments of the population.