When it was launched in December 2020, the Treasury’s credit guarantee scheme for micro, small and medium-sized enterprises (MSMEs) was meant to open up access to bank loans for the sector that has struggled to attract credit due to risk concerns.
By the end of last year, disclosures by the Central Bank of Kenya (CBK) show, MSMEs had taken up a cumulative Sh4.4 billion in loans under the scheme from the seven participating lenders—Absa, Credit Bank, KCB Group, NCBA, Diamond Trust Bank, Stanbic Bank and Cooperative Bank.