EIB, Family Bank to Mobilize $110M for SME Financing in Kenya
TLDR
- EIB Global has partnered with Kenya’s Family Bank to mobilise €100 million (US$110 million) in financing for SMEs
- The facility aims to expand access to credit for women-led enterprises and youth entrepreneurs in Kenya
- At least half of the funds will be allocated to businesses owned or managed by women, while a minimum of 30% will support ventures led by young entrepreneurs
The European Investment Bank’s development arm, EIB Global, has partnered with Kenya’s Family Bank to mobilise €100 million (US$110 million) in financing for small and medium-sized businesses. The facility aims to expand access to credit for women-led enterprises and youth entrepreneurs in Kenya.
Under the agreement, EIB Global is providing a €50 million credit line, which Family Bank will match. The financing, announced at the EU-Kenya Business Forum in Nairobi, will primarily support SMEs and mid-cap firms in the agriculture and trade sectors.
At least half of the funds will be allocated to businesses owned or managed by women, while a minimum of 30% will support ventures led by young entrepreneurs. The partnership aligns with the bank’s 2025–2029 strategy to scale SME lending and deepen engagement across value chains. EIB Global will also offer technical assistance to strengthen Family Bank’s gender strategy and explore a 2X Challenge certification to further promote women's economic empowerment.
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Key Takeaways
Access to finance remains a major hurdle for Kenyan SMEs, particularly those led by women and young people. According to the World Bank, only 30% of women-owned businesses in Sub-Saharan Africa have access to formal credit. Youth unemployment, meanwhile, continues to exceed 35% in Kenya, with limited capital access cited as a key barrier to entrepreneurship. The EIB-Family Bank initiative aims to close this financing gap through both funding and technical support. By tying at least 80% of the credit line to women and youth-led businesses, the program targets the segments most excluded from traditional finance. The partnership also aligns with the 2X Challenge, a global initiative launched in 2018 to mobilize capital for projects that empower women as business owners, leaders, employees, and consumers. Certification under the 2X standard would enhance the program’s impact tracking and eligibility for future gender-focused investment.
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