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Originally published by Capital Business
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business
July 27, 2026
1mo ago

Pending state bills push SMEs to alternative financing

Pending state bills push SMEs to alternative financing

According to data from the Controller of Budget, outstanding public pending bills stood at Sh465.87 billion as of March 2026. This was a 10.5 percent increment from Sh421.6 billion recorded in March 2025...

✨ Key Highlights

Kenyan SMEs are increasingly turning to alternative financing like structured trade finance to navigate a severe liquidity crunch caused by escalating unpaid government pending bills.

  • Outstanding public pending bills reached a record high of Sh465.87 billion as of March 2026.
  • Faulu Microfinance Bank, an Old Mutual-backed institution, is expanding its trade finance offerings to support these affected businesses.
  • The bank utilizes mitigated credit strategies such as LPO and invoice financing to provide crucial cash advances to SMEs struggling with delayed payments from government entities.

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Part of the Day's Coverage

Kenyan Insurance Industry Shifts Toward Digital Models - July 2026

The Kenyan insurance industry is undergoing a significant transformation, moving away from rigid, traditional products towards more accessible, customer-centric, and digitally-driven models to cater to a dynamic market. Meanwhile, Kenyan SMEs are increasingly turning to alternative financing like structured trade finance to navigate a severe liquidity crunch caused by escalating unpaid government pending bills. The Competition Authority of Kenya has closed an abuse of dominance case against Chinese ceramic tile manufacturer KEDA. Additionally, Capital FM is hosting a Business, Investment and Growth townhall on July 30, bringing together leading Kenyan experts to discuss wealth creation and economic prospects.

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