Access to affordable credit remains biggest MSME challenge, says Ruto

Access to affordable credit remains biggest MSME challenge, says Ruto
Access to affordable credit remains biggest MSME challenge, says Ruto - Workers at an export processing zone factory in Athi River, Machakos County. (Photo: File/Reuters)
Workers at an export processing zone factory in Athi River, Machakos County. (Photo: File/Reuters)

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President William Ruto noted that Kenya's MSME financing gap stands at about Sh3 trillion, adding that the government alone cannot bridge the shortfall.

President William Ruto has called for a rethink of how micro, small and medium enterprises (MSMEs) access financing, saying affordable credit remains the biggest barrier to the sector's growth.
Speaking during the 2026 World MSME Day celebrations at the Kenyatta International Convention Centre (KICC) in Nairobi on Saturday, Ruto said that despite government efforts to support entrepreneurs, access to affordable finance continues to hinder the growth of small businesses.
"This is the heavy lifting the government has undertaken. But none of it will be enough until we break the one barrier that still holds our MSMEs back: access to affordable finance," Ruto said.

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He noted that Kenya's MSME financing gap stands at about Sh3 trillion, adding that the government alone cannot bridge the shortfall.
"The World Bank estimates that small businesses across developing economies face a financing gap of more than $5 trillion (Sh650 trillion). Government funds can catalyse and prepare our people for credit. But the government alone cannot close a Sh3 trillion financing gap. The private sector can," Ruto said.
He said the government is working to strengthen credit access by recognising borrowers' financial discipline, noting that more than eight million negatively listed Kenyans had been given a second chance, with over two million already rebuilding their credit standing and rejoining the formal economy.

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"Now we are turning that credit history into a National Credit Score, so that character and behaviour, not just a title deed or a logbook, can unlock financing," he said.
The President challenged commercial banks to expand lending to small enterprises, saying that although lenders had extended about Sh1 trillion in enterprise financing over the past three years, the majority of micro and small businesses remained excluded.
"This is neither a complaint nor a lamentation. It is an invitation," he said. "Today, here, I want to begin an honest national conversation with the private sector on the central question of our economic future: How do we sustainably unlock financing for the Kenyan MSME?"

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