Banks caught between Ruto's lending push and rising bad loans

A recent Central Bank of Kenya survey found that 78 per cent of banks plan to intensify credit recovery efforts in the trade sector. [File, Standard]

President William Ruto has renewed his criticism of Kenya's cash-rich commercial banks, accusing them of denying millions of small businesses access to affordable credit despite posting record profits. His strongly worded remarks have reignited the long-running standoff between the government and the banking sector.

Speaking during the World MSME Day celebrations in Nairobi, the President challenged lenders to rethink their business models, pointing to the government-backed Hustler Fund as proof that profitable lending is possible at single-digit interest rates.

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