In October 2026, two Kenyan banks signed trade finance agreements with the African Development Bank (AfDB). Equity Bank Kenya secured a $60 million** Trade Finance Transaction Guarantee Facility on October 1, under which the AfDB will provide confirming banks with guarantees covering up to 100% of non-payment risk on eligible letters of credit issued by Equity Bank, thereby expanding trade finance access for Kenyan SMEs and local corporates. The following day, Family Bank signed a **$10 million Trade Finance Line of Credit, aimed at providing foreign currency financing to SMEs and local enterprises in manufacturing, agriculture, healthcare, renewable energy, and women-owned businesses, with MSMEs accounting for over 80% of the bank's customer base. Both agreements respond to Africa's trade finance gap, which the AfDB estimates could reach $92 billion in 2024, with SMEs among the hardest-hit groups. Equity Bank's guarantee facility reduces the risk exposure of confirming banks, indirectly enabling Kenyan businesses to obtain financing for eligible imports; Family Bank's credit line directly provides foreign currency liquidity to help enterprises finance imports and participate in regional and international value chains. Neither agreement has been reported in dedicated articles by Business Daily or The East African; information primarily comes from AfDB official announcements and Kenyan media such as The Standard. (ICE NAIROBI)

Fonte notizia: The East African