Country
Kenya

Local Project Partner
Family Bank (FBL), Trade and Development Bank (TDB)

German Project Partner
Frankfurt School of Finance and Management

Donor
European Investment Bank (EIB)

Duration
11.05.2026 - 11.05.2028

Kenya’s youth represent a significant demographic and economic force, yet face structural barriers to labor market integration and financial inclusion. Youth account for approximately 35% of the population and over 60% of the unemployed. Micro, small, and medium enterprises (MSMEs) in Kenya face a financing gap estimated at approximately USD 19–20 billion, with youth-led enterprises particularly affected due to lack of collateral, limited credit history, and insufficient financial literacy. From the supply side, financial institutions often perceive youth segments as higher risk and lack customized risk assessment tools and youth-centric products. Many Kenyan MSMEs operate informally with limited access to finance, weak managerial capacities, and insufficient integration into structured value chains. This is particularly evident in agriculture, where productivity gaps and climate vulnerabilities further constrain business growth.

The project aims at supporting access to finance for MSMEs and contributing to key priorities of the European Union (EU) in the region, notably youth employment and gender equality as well as to Kenya’s development objectives. The Family Bank will be supported through targeted capacity building and advisory interventions to deploy EIB financing (EUR 50 million loan) effectively in accordance with EIB standards and requirements and to achieve its contractual requirements. At least 30% of the EIB loan must be allocated to enterprises in which young people hold an interest, 50% to enterprises owned or managed by women, and 30% to sub-projects in the agricultural sector. The project’s primary focus is on EIB loans for young people. In addition, the project will support the organization of the EIB-TDB Banking Forum, which is expected to take place in Nairobi in September 2026.

Tasks

1. Provide customised technical assistance and access to trainings to improve the financial institutions’ lending activities to MSMEs with a particular focus on MSMEs owned, led by and/or significantly involving young people
2. Support Family Bank to comply with EIB contractual requirements
3. Provide customized technical assistance to final beneficiaries/MSMEs
4. Provide customized technical assistance to actors active in the wider ecosystem
5. Ensure coordination and synergies with existing initiatives, in particular those that are EU funded
6. Provide support to the EIB in organising the EIB-TDB Banking Forum in East Africa