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Machakos Governor Wavinya Ndeti tries out a sewing machine at the newly launched Shining Hope for Communities community centre in Machakos, as tailoring instructor Elizabeth Mwendwa guides her, while SHOFCO CEO Kennedy Odede (left) looks on. [Courtesy]
Kenya's youth credit market is shifting toward Sacco-led lending models as traditional banking continues to exclude young borrowers with limited collateral and informal income streams.
The gap has pushed young borrowers toward savings groups and Sacco-based lending, where collateral requirements are lower, and interest rates are a fraction of what microfinance institutions (MFIs) charge, with some exceeding 30 per cent annually.
Across several counties, such programmes are now disbursing loans and grants directly to youth enterprises and small businesses.
