Family Bank has entered into a deal with EIB Global, a development investment arm of the European Investment Bank, to lend Sh14.7 billion to women-owned and youth-led businesses in the country.

In the deal, EIB Global will provide €50 million in long-term financing, which Family Bank will match.

The funds are intended to support small and medium-sized enterprises (SMEs) and mid-sized companies, especially those operating in the agriculture and trade sectors.

The funding initiative, launched during the EU-Kenya Business Forum in Nairobi, stipulates that at least 50 percent of the loans will go to women-led enterprises and 30 percent to youth-run businesses.

The deal comes amid persistent challenges in accessing affordable financing for SMEs in Kenya, particularly among demographic groups historically underserved by commercial lenders.

The credit line will also be supported by technical assistance from EIB Global, aimed at strengthening Family Bank’s gender inclusion strategy and financial product development. This includes exploring certification under the 2X Challenge, a global initiative to mobilize capital for women-focused investments.

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This latest deal marks the fourth financing partnership between the two institutions and aligns with broader European Union efforts under its Global Gateway strategy and the Investing in Young Businesses in Africa (IYBA) program.

Analysts say the move could inject much-needed liquidity into a key segment of the economy, though the real test will be in how effectively the targeted groups—women and youth entrepreneurs—are reached and supported beyond capital access.