Banking on Tea
in Africa
Banking on Tea
in Africa
Kenya is the world’s largest exporter of black tea, supporting 600,000 rural smallholders. Yet the sector faces biodiversity loss, climate stress, and unsustainable farming practices that threaten its future. Moreover, the small/micro producers are typically underserved by traditional banks, but Family Bank has developed a solution to cater for this profile of producers.
Investment
Why We Invested
Family bank is a tier II locally owned bank that was founded by a small-scale farmer with the aim of solving SME access to finance. Through the eco.business Fund, a USD 20M investment in Family Bank was an opportunity to strengthen Kenya’s agricultural value chains while managing sector risk. The bank’s nationwide reach made it an ideal partner to channel financing into sustainable agriculture.
Value Creation & Sustainability
The investment supported 9,700 smallholder farmers, operating 6,600 hectares under sustainable management, and directly and indirectly responsible for 8,000 jobs. Through the capacity and advisory arm of the fund, more than 200 bank staff were trained in agri-credit, which enabled the expansion of Family Bank’s agri-lending capacity: 70 branches now originate loans, compared to just 20 before our engagement. This delivers both portfolio diversification and scalable rural finance.
Farmers reached by this loan are typically small, and they are adopting climate-smart practices, from planting native trees to reducing pesticide use. These measures protect biodiversity, conserve natural resources, and improve food security. The investment strengthens Kenya’s tea industry while creating a model for broader agricultural resilience. Additionally, smallholder farmers view tea as a key income generating enterprise to support their social roles like paying school fees for their kids.
SDG's supported
