EIB Global and Family Bank Partner to Support Women and Youth Entrepreneurs in Kenya with €100 Million Financing

EIB Global and Family Bank Partner to Support Women and Youth Entrepreneurs in Kenya with €100 Million Financing

(IN BRIEF) EIB Global and Family Bank in Kenya have launched a €100 million financing initiative to support small and medium-sized enterprises (SMEs), particularly those owned or led by women and youth entrepreneurs. The partnership, which includes a €50 million credit line from EIB Global, aims to enhance working capital and investment in Kenya’s trade and agriculture sectors. The financing also supports the EU’s Global Gateway strategy, which promotes trade, manufacturing, and climate action. This collaboration is aligned with the Investing in Young Businesses in Africa (IYBA) initiative and marks the fourth partnership between EIB and Family Bank.

(PRESS RELEASE) LUXEMBOURG, 13-May-2025 — /EuropaWire/ — EIB Global, the development arm of the European Investment Bank, and Family Bank in Kenya have announced a groundbreaking €100 million (14.7 billion Kenyan shillings) financing initiative aimed at expanding credit access for small and medium-sized enterprises (SMEs), with a special focus on women-owned or led businesses and youth entrepreneurs in Kenya. EIB Global will provide €50 million in a credit line to Family Bank, which will match the amount, further amplifying the financial support for these businesses.

The agreement, unveiled at the second edition of the European Union-Kenya Business Forum in Nairobi, is designed to enhance the working capital and investment potential of SMEs and Mid-Caps operating primarily in the trade and agriculture sectors. At least half of the funds will target businesses owned or managed by women, with a further 30% directed towards youth entrepreneurs.

Nancy Njau, CEO of Family Bank, stated, “SMEs represent over 80% of our customer base. Our partnership with EIB Global supports our 2025–2029 strategy to scale SME lending, deepen market segmentation, and address the specific needs of SMEs across various value chains, driving sustainable growth and long-term value.”

Beyond the credit line, EIB Global will provide technical assistance to Family Bank to strengthen its gender strategy and product offerings. This includes potential certification under the 2X Challenge, an initiative launched in 2018 by multilateral development and finance institutions to support women entrepreneurs globally.

“We understand that small businesses, especially those led by women, require more than just financial support; they also need education, networking, and connections with like-minded enterprises,” added Njau. “This partnership enables us to offer this holistic support, helping women and youth entrepreneurs thrive.”

The financing partnership is part of the EU’s Global Gateway strategy, which aims to promote trade, manufacturing, agriculture, climate action, and services—key priorities for Kenya’s development. The initiative is also aligned with the Investing in Young Businesses in Africa (IYBA), a pan-African program aiming to create sustainable jobs and expand business opportunities for young entrepreneurs. EIB currently chairs the IYBA.

EIB Vice-President Thomas Ostros commented, “The financing partnership with Family Bank will inject vital capital into Kenya’s private sector, supporting businesses and fostering employment. Investing in women and youth entrepreneurs is not only morally right but also strategically wise, as it holds immense potential for growth and prosperity in Kenya.”

This new agreement marks the fourth collaboration between EIB Global and Family Bank, further solidifying their long-standing partnership in driving sustainable economic growth in Kenya.

Hans Stausboll, European Commission Director for International Partnerships – Africa, added, “The European Fund for Sustainable Development Plus (EFSD+) demonstrates our commitment to fostering sustainable economic growth by empowering SMEs in partner countries. This collaboration with the European Investment Bank unlocks essential financial resources for SMEs in Kenya, fueling female entrepreneurship and innovation, while advancing climate-smart and sustainable value chains in the Kenyan economy.”

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.

Media contacts:

Harriet Kwamboka
h.ongaki@eib.org
+ 254 114106871

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank