The African Development Bank (AfDB) and Family Bank have signed a US$10 million (about Ksh1.3 billion) trade finance line of credit aimed at easing access to foreign currency for Kenyan businesses that rely on imports, the two institutions said this month.

The facility was signed in Nairobi at the AfDB's East Africa regional office, according to The Standard and Devdiscourse. It will allow Family Bank to extend foreign-currency financing to eligible small and medium-sized enterprises (SMEs) and local corporates so they can import goods and productive inputs.

Who will benefit

The lending will target firms in manufacturing, agriculture, health and renewable energy, with The Standard also listing general commerce among the eligible sectors. Women-owned and women-led enterprises have been identified as a priority group.

The two banks said the financing is intended to strengthen local value chains, help firms expand their productive capacity and support intra-African trade under the African Continental Free Trade Area (AfCFTA).

According to Uasin Gishu News, the parties said the deal is meant to deepen value chains, diversify productive capacity and stimulate economic growth. Devdiscourse reported that it is also intended to support Kenya's drive to diversify production.

Family Bank chief executive Nancy Njau said micro, small and medium enterprises (MSMEs) account for more than 80 per cent of the lender's customers.

"This facility strengthens our capacity to scale up lending to MSMEs," Ms Njau said, as quoted by Business Daily.

Ms Njau added that the bank was "committed to ensuring that this financing translates into tangible opportunities for businesses", according to Uasin Gishu News.

According to Devdiscourse, the facility supports Family Bank's 2025–2029 strategy, which focuses on expanding tailored financing for businesses, including those owned and led by women.

Easing pressure on traders

AfDB's head of trade finance, Lamin Drammeh, said the deal would relieve pressure on businesses that trade across borders. "The financing will ease the pressure on exporters, importers in Kenya," he said, according to Business Daily. Uasin Gishu News quoted him as describing the signing as "timely and significant".

Alex Mubiru, the AfDB's Director General for East Africa, who exchanged the signed documents with Ms Njau, described trade finance as "a quiet engine of economic activity", Devdiscourse reported. He said the partnership reflected the bank's commitment to supporting local businesses and strengthening Kenya's financial system.

A wide financing gap

African businesses have long struggled with shortages of foreign currency and limited access to trade finance, which raise the cost of importing raw materials and equipment. Mr Drammeh put Africa's trade finance gap at more than US$74 billion, according to Business Daily and The Standard. Devdiscourse, citing the AfDB's 2025 Trade Finance Report, said the gap may have been as high as US$92 billion in 2024.

About Family Bank

Family Bank was founded in 1984 and became a fully fledged commercial bank in 2007. It listed on the Nairobi Securities Exchange on 23 June 2026 at Ksh18 per share, Business Daily reported, and its shares were trading at Ksh27.95 on 5 October.

The lender reported total assets of Ksh238.9 billion and customer deposits of Ksh180.2 billion as at June 2026, according to The Standard.

The two banks did not disclose the tenor or pricing of the facility in the reports.

Photos: Citizen59 / Wikimedia Commons, CC BY 3.0; Kenya Ministry of East African Affairs, Commerce and Tourism (Stuart Price) / Wikimedia Commons, public domain