The African Development Bank Group and Family Bank Limited have signed a USD 10 million Trade Finance Line of Credit aimed at widening Kenyan businesses’ access to foreign-currency financing.
The facility will let Family Bank offer trade financing to eligible small and medium-sized enterprises and local corporates in manufacturing, agriculture, health and renewable energy, as well as women-owned enterprises. Eligible firms can use it to finance imports, secure productive inputs and take a stronger place in domestic, regional and international value chains.
The signing took place at the Bank Group’s East Africa regional office on 2 October 2026. Bank Group East Africa Director General Alex Mubiru described trade finance as a quiet engine of economic activity and said the partnership would help diversify Kenya’s productive capacity and support intra-African trade under the African Continental Free Trade Area.
What Family Bank says the money will do
Family Bank Limited CEO Nancy Njau said the facility advances the bank’s 2025-2029 strategy to expand 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. As a Bank, we are committed to ensuring that this financing translates into tangible opportunities for businesses and contributes meaningfully to inclusive economic growth,” Njau said in a statement from the African Development Bank.
According to the Bank Group’s 2025 Trade Finance Report, the trade finance gap was estimated at as much as USD 92 billion in 2024. SMEs are among the businesses most affected by that shortfall, which is why lines of credit that unlock hard-currency working capital tend to matter quickly on the ground.
Why foreign-currency trade lines matter now
Many Kenyan manufacturers and agro-processors still need dollars or euros to pay for machinery, chemicals, packaging and other imports. When local banks struggle to match that demand, deals stall even when the local-currency books look healthy. A dedicated trade finance line gives Family Bank room to underwrite letters of credit, import loans and related structures without crowding out ordinary shilling lending.
The deal also fits a wider credit recovery story. Private-sector bank lending in Kenya grew 10.6 per cent year on year in September 2026, while average commercial lending rates stood at about 14.4 per cent. Cheaper shilling credit helps domestic demand; foreign-currency trade facilities help exporters and import-dependent firms stay competitive.
Sectors named in the facility, including agriculture, manufacturing and renewable energy, sit at the centre of Kenya’s jobs and export agenda. Health and women-owned enterprises are also singled out, matching Family Bank’s stated focus on MSMEs that make up most of its customer base.
What to watch next
Disbursement speed, pricing and documentation requirements will decide whether the USD 10 million moves into real invoices and shipments. Businesses that already bank with Family Bank, or that can meet trade-finance eligibility checks, are the first candidates.
Banks, trade desks and credit teams hiring for similar work continue to post openings on Job in Kenya. For broader market context on lending and rates, see related coverage on Business Radar.
