Kenya’s credit finance strategies for small businesses need a boost
Key questions this article answers:
- What sources do Kenya micro and small enterprises (MSEs) use to finance their businesses?
- Have mobile money loans in the East African country improved MSE’s access to finance?
Kenyan micro and small enterprises (MSEs) need a boost to keep the lights on. 49% of small firms face barriers to accessing finance, more than the African average of 40%.
The past three years have been especially rough between the COVID-19 lockdowns, supply shocks from the Russian-Ukrainian war, and rising living costs. A year-long study of Kenyan small businesses found that two-thirds of small firms’ employees went without food at some point during the year.
It’s no wonder President William Ruto aptly named his $410 million loan scheme for low-income Kenyans and small businesses ‘the Hustler Fund’. The former chicken seller-turned President likely gets the plight of Kenya’s tenacious micro-entrepreneurs more than most.
Kenya’s micro and small enterprises (MSEs) contribute 24% to the gross domestic product and 93% of the labour force. With their economic might, MSEs aren’t a group to be trifled with, but formal financial institutions underserve them.
Invest with Confidence, Operate with Precision.
Access economic and industry data & insight for global organisations.
Trusted by leading global organisations
