Family Bank has secured a total of Sh1.95 billion (USD 17 million), from BlueOrchard Finance Limited to support the extension of Small and Medium-Sized Enterprises (SMEs) and the education sector.
The funding will be used for onward lending to MSMEs to enable the resumption of business operations from the challenges of COVID-19, to expand access to affordable credit extended to SMEs by the Bank and to promote access to education for secondary, higher and vocation education levels through customized financial services.
“Our long-term business perspective is to drive sustainable value addition across the end-to-end value chain. This can only be possible through collaboration with partners such as BlueOrchard, a leading impact investment manager,” said Rebecca Mbithi Family Bank CEO
This year the Bank acquired Sh1.5 billion loan portfolio guarantee facility from the African Guarantee Fund (AGF) to increase lending to Small and Medium-sized Enterprises, women-led businesses and climate-friendly investments.
“As a Bank, we have taken an active role in building a sustainable business that seeks to provide value in the communities that we operate in. Further to supporting SMEs, we are deliberate in supporting key drivers of the economy like the education sector,” Rebecca added.
In addition, the bank acquired Sh1.1 billion (USD 10 million) from eco business Fund to increase access to finance for sustainable agricultural producers, particularly in the tea sector. This brings the total amount of funds raised by the Bank to Sh4.55 billion.