MSMEs face Sh3.3 trillion credit gap as expansion plans stall

Kenya’s micro, small, and medium enterprises are facing a deep financing squeeze that experts warn could slow job creation and economic expansion if left unresolved...

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Kenyan Micro, Small, and Medium Enterprises (MSMEs) are facing a significant Sh3.3 trillion credit gap, hindering their expansion plans and potentially slowing job creation and economic growth.

MSMEs require an estimated Sh4 trillion in market loans, but commercial banks currently provide only about Sh700 billion.
Faulu Microfinance Bank Chief Executive Officer Julius Ouma highlighted the need for inclusive lending models beyond traditional collateral requirements.
The article suggests adopting alternative credit models that assess cash flows and transaction patterns, alongside integrated support including digital financial tools and business education.

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