Written By Lisa Murimi
The Central Bank of Kenya (CBK) has revealed that banks extended Sh783 billion in loans to micro, small, and medium enterprises (MSMEs) in 2023.
This marks an increase of Sh75 billion from the previous year, according to President William Ruto.
Speaking at the Inua Biashara Exhibition at the Kenyatta International Convention Centre, President Ruto highlighted the banking sector’s crucial role in economic growth.
He commended the sector’s commitment to expanding MSME lending, showcasing tailored products and solutions at the event organized by the Kenya Bankers Association.
“The banking industry has demonstrated a significant commitment to boosting MSME financing, which will have a profound impact on economic development,” said Ruto.
He also announced the sector’s pledge to double lending to MSMEs, providing an additional Sh150 billion annually.
The government, in turn, will support this expansion through policy reforms and institutional backing, including the prompt payment of pending bills after verification.
The government continues to bolster MSMEs with initiatives like the Hustlers Fund, allocating Sh 50 billion annually to offer affordable credit to informal workers and businesses.
Additionally, efforts are underway to renovate Constituency Industrial Development Centres (CIDCs) and relaunch the Women Enterprise Fund to empower women entrepreneurs across Kenya.
