African Guarantee Fund (AGF) funds Family Bank with a Ksh1.5 billion loan portfolio. The funds are for uplifting the Small and Medium-sized Enterprises (SMEs).
Precisely, the money is meant to increase SMEs’ loan books to micro, small and medium-sized enterprises, women-led businesses and climate-friendly investments.
“With the gradual recovery of the economy as we contain the effects of the pandemic, we are able to widen our capital base to support more MSMEs by extending credit at favourable terms,” said Family Bank Chief Executive Officer Rebecca Mbithi.
In addition to the extension of the credit guarantee facility, Family Bank will be provided with capacity-development assistance by The AGF. The amount will be utilized for technical expertise for the SMEs and to expose entrepreneurs to global knowledge.
“Through this credit facility, Family Bank can scale up lending to MSMEs who form over 80 % of our customers base,” said Mrs Mbithi.
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As a result, SMEs will be educated on business development and climate-smart ventures through the five-year agreement.
Earlier on, two loan portfolio agreements worth Ksh250 million in 2015 and Ksh774 million in 2018 had been given to Family by AGF.