CBK says banks gave Sh783 billion in loans to Kenyan SMEs in 2023

The Central Bank of Kenya (CBK) has announced that the banking sector provided Sh783 billion in loans to micro, small, and medium enterprises (MSMEs) in 2023.

Speaking at the Kenyatta International Convention Centre during the Inua Biashara Exhibition on Wednesday, President William Ruto said the figure represented an increase of about Sh75 billion.

The exhibition was organised by the Kenya Bankers Association.

"This event has fundamental positive implications for economic growth because banking institutions have demonstrated their commitment to expanding lending to the MSME sector through a variety of dedicated products and solutions that have been showcased here today. This commitment is significant and impactful," he said.

The head of state also revealed that the banking industry has pledged to double its lending to MSMEs, aiming to provide Sh150 billion in new loans each year.

"Accordingly, the government will support this bold and innovative move through policy and institutional backing, including measures to guarantee the prompt payment of all pending government bills, which will commence once the ongoing verification process is completed," Ruto added.

The government has rolled out several initiatives to bolster MSMEs, including the Hustlers Fund, which allocates Sh50 billion annually to offer affordable credit to informal sector workers and MSMEs.

In addition, efforts are underway to refurbish Constituency Industrial Development Centres (CIDCs) to further support local businesses.

Furthermore, the Women Enterprise Fund has been relaunched with increased funding to specifically empower women entrepreneurs. The fund is a semi-autonomous government agency in the Ministry of Public Service, Youth and Gender Affairs and was established in August 2007.

It was established to provide accessible and affordable credit to support women's starting or expanding businesses for wealth and employment creation.

The Women Enterprise Fund was set up by the Kenyan government to benefit women aged above 18 years, meaning any woman can apply, whether she is part of a group or as an individual.

It offers a range of products and services to help empower women in society and improve their income.