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Why traditional credit models must evolve to finance creative economy
Credit guarantees can absorb some early risk, allowing lenders to build portfolios and learn from borrower behaviour. Kenya's creative economy does not need charity.
Kenya's next generation of businesses will not necessarily be built around factories, machinery, land or buildings. Some will be built around a camera, laptop, fashion label, beauty brand or creative talent.
Yet when these entrepreneurs seek capital, they are often assessed using lending models built for a different economy: what asset do you have that we can take as collateral? That excludes businesses whose value sits in intangible assets such as intellectual property, brands, audiences and future income streams.
