Kenyan Small and Medium Enterprises (SMEs) face a myriad of challenges, including, but not limited to, access to finance, markets, and the high cost of doing business. These challenges have led to many small businesses shutting down.
Stats from the Kenya National Bureau of Statistics (KNBS) show that at least 450,000 SMEs shut down their businesses annually in Kenya. This means that at least 30,000 of them are shutting down monthly, and 1,000 daily.
But one bank has come out to give SMEs a chance to thrive and go beyond their first birthday. This bank is Family Bank through its Stock Financing facility under its Biashara Loans. This product targets Small and Medium Enterprises (SMEs) and other businesses that require quick access to capital to purchase essential stock.
The facility is designed to support enterprises across various sectors, from agri-businesses acquiring farm inputs to retailers stocking shelves, by providing timely funding that can be repaid in line with the business’s income cycle.
Here is a small video that gives you a full picture of the product:
According to the Bank, the Stock Financing product aims to ease cash flow pressures that often hinder the growth of SMEs. With flexible repayment terms aligned with seasonal or cyclical income, entrepreneurs can confidently purchase and replenish stock without straining their day-to-day operations.
“SMEs remain the backbone of Kenya’s economy, but many of them face challenges in maintaining adequate working capital to sustain growth,” the Bank noted. “Through this Stock Financing facility, we are giving business owners the ability to stock up with confidence, strengthen their operations, and meet customer demand consistently.”
The facility is expected to particularly benefit agribusinesses that need to buy farm inputs such as seeds, fertilizers, and animal feeds ahead of planting or production seasons. Retailers, wholesalers, and distributors who need to maintain a consistent supply to meet fluctuating consumer demand also stand to gain.
For those who bank with Family Bank, they will tell you that the bank continues to strengthen its positioning as a key enabler of SME growth and resilience. The facility also reflects the Bank’s broader strategy of designing financial products that respond directly to the needs of entrepreneurs and contribute to sustainable business expansion.
Industry analysts note that such targeted financial solutions are essential in building the competitiveness of SMEs, which account for more than 90 percent of Kenya’s private sector. Access to affordable credit remains one of the biggest hurdles for this segment, and initiatives like Family Bank’s Stock Financing could play a pivotal role in bridging that gap.
With this move, Family Bank has reaffirmed its commitment to powering business growth and enabling SMEs to seize opportunities, manage liquidity effectively, and scale operations with greater certainty.
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