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.

lunedì 22 giugno 2026 New tab

TL;DRAI

Kenya's MSMEs need Sh4T credit but get only Sh700B; Sh3.3T gap driven by collateral-focused models excluding viable firms. Alternative cash-flow lending unlocks fintech opportunity and critical lever for job creation and sustainable economic expansion.

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Traders display their wares in Kisii town. [Sammy Omingo, Standard]

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

Despite being the backbone of local commerce and a key driver of employment, small businesses continue to struggle with limited access to formal credit.

Findings from the revised MSME policy review process indicate that the sector requires approximately Sh4 trillion in market loans to sustain operations and support growth.