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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.

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Investment

$15M

January 2022

$5M

December 2023

Why We Invested

ebf report2

 

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.

6,600

 Hectares under sustainable management  

8,000

Indirect jobs supported  

9,700

Smallholder farmers supported  

Value Creation & Sustainability

ebf report3

 

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.  

Fund information

The funds, sub-funds and securities described herein (or in any other linked or related website) are not being offered for sale to the public in the United States of America or in any other jurisdiction in which a public offer would be prohibited by applicable law. To the extent funds, sub-funds and securities described herein (or in any other linked or related website) are being offered in these jurisdictions (some of the funds, sub-funds and securities may not be offered in certain jurisdictions), they will only be offered by private placement to a limited number of qualified institutional investors in accordance with the applicable laws and regulations in these jurisdictions. Offers will only be made pursuant to a private placement memorandum approved by the funds. Institutional investors in these jurisdictions that wish to learn more about the funds, sub-funds and securities should contact the persons listed below for further inquiry.

Special notice as regards the European Fund for Southeast Europe, the Green for Growth Fund and the Latin American Green Bond Fund: In respect of the United States of America, Canada, Japan or Australia or any other jurisdiction in which the distribution, offer, sale, transfer or resale would be prohibited by applicable law, no investment in notes/shares or other instruments of these funds (or their respective sub-fund(s)) can be offered or made.

All funds are managed or advised (as the case may be) by Finance in Motion Asset Management S.à r.l., a Luxembourg-based Alternative Investment Fund Manager directly supervised by the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (CSSF).

  • Finance in Motion Asset Management S.à r.l.
  • 68, Bd de la Pétrusse,
  • L-2320 Luxembourg