Family Bank lands $10M AfDB credit line to fund Kenyan trade

What's the deal? Family Bank Kenya has secured a US$12.7M trade finance facility from the African Development BankDealroom has a profile for this one. Try Dealroom →. The line of credit will expand access to foreign currency for businesses in trade and productive sectors.

Where the money goes: The facility targets small and medium-sized enterprises and local corporates in manufacturing, agriculture, health, and renewable energy, as well as women-owned businesses. Chief executive Nancy Njau says such firms make up more than 80% of the bank's customer base.

Why now? The deal addresses what the African Development Bank describes as a growing need to finance imports. Its head of trade finance, Lamin Drammeh, said the agreement would help narrow Africa's trade finance gap, which the bank estimates at more than $74 billion.

In the bank's words: "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.

The signal: The facility is also meant to support intra-African trade and the African Continental Free Trade Area (AfCFTA) by widening access to credit for Kenyan businesses. For a lender rooted in smaller firms, foreign currency financing is a direct lever on the import-dependent corners of Kenya's economy.

Read more: businessnow.co.ke

Image credit: makeitkenya