Kenya - Family Bank Limited (FBL)

This proposal is a Trade and SME Finance Facility (Facility) of up to USD 30 million to Family Bank Limited (FBL). It comprises a (i) Trade Finance Line of Credit (TFLoC) to support Family Bank Limited’s (FBL) short term trade finance activities; (ii) Transaction Guarantee (TG) that will allow the Bank to provide up to 100% guarantee to Confirming Banks (CBs) for the non-payment risk arising from the confirmation of Letters of Credit and similar trade finance instruments issued by FBL; and (iii) Line of credit (LoC) to support SMEs in the health, renewable energy and agriculture sectors as well as Women Owned Businesses (WOBs). The project, therefore, presents a solid and rationale basis for the AfDB to contribute to SME financing through a sound, well-managed and reputable local bank that meets its key criteria for SME financing in terms of strong commercial viability, gender and SME orientation, strong development outcomes and additionality. The project contributes to climate finance, with 4 million USD of the total approved amount dedicated to mitigation.