The Sh2.5 trillion financing gap holding back Kenyan businesses
Kenya's SMEs create jobs but still struggle to secure affordable finance. What's driving the credit gap?..
✨ Key Highlights
Kenyan businesses face a significant hurdle in accessing affordable finance, with a substantial financing gap hindering their growth and the country's economic development.
- The financing gap for Kenyan micro, small, and medium enterprises (MSMEs) is estimated at Sh2.5 trillion by the Kenya Bankers Association.
- This lack of capital restricts private investment, job creation, and the private sector's contribution to economic transformation.
- Factors contributing to expensive credit include perceived risk, lack of formal financial records, and insufficient collateral, creating a cycle where limited finance restricts growth, making future access even harder.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
Standard Chartered Mobilizes Sh97bn for Sustainable Finance in Kenya - July 2026
Standard Chartered Bank Kenya has significantly mobilized over Sh97 billion in sustainable finance since 2021, channeling these funds into crucial sectors like renewable energy and affordable housing. The Agricultural Finance Corporation is introducing collateral-free lending to enhance financial inclusion for Kenyan farmers, aiming to boost the agricultural sector. Kenyan businesses face a significant hurdle in accessing affordable finance, with a substantial financing gap hindering their growth and the country's economic development. Separately, Kenyan entrepreneurs and businesses are increasingly turning to alternative finance options beyond traditional banks to secure capital for growth, addressing this significant financing gap.
Kenya's news, briefed daily
Daily Briefs with audio, your topics, and breaking stories.
Related News
Take Kenya's news with you
Breaking stories, daily briefs, and the topics you follow - on your phone, free.
