| Project Detail |
Approval Date 08 Mar 2023 Sovereign / Non-Sovereign Non Sovereign Sector Finance DAC Sector Code 24030 Commitment U.A 14,894,101.08 Status Approved Project General Description 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. Project Objectives The project development objective is to increase financing to SMEs, local corporates in Kenya. Beneficiaries The main beneficiaries of the proposed Financial package are local corporates and SMEs that are active in the productive economy, import, export, operating in sectors such as manufacturing, agribusiness, energy, health, logistics, commerce, service, food (agriculture) to contribute to the economic development of Kenya. |
