This archive report was first published on 10 May 2021.
On May 10, 2021, the Kenya government launched a KSh 10 billion Credit Guarantee Scheme in partnership with seven local banks and development partners to support small and medium-sized businesses.
Small businesses are crucial to the Kenyan economy, employing nearly 15 million workers and contributing significantly to the national income. However, they have been severely affected by the Covid-19 pandemic, facing challenges such as lack of funds and low business activity.
Speaking during a CEO Chat hosted by the Kenya Bankers Association, Betty Korir, CEO of Credit Bank Plc, emphasized the importance of the Credit Guarantee Scheme in providing easy access to loans for SMEs, protecting bank customers in case of default, and boosting financial stability in the banking sector.
“The Credit Guarantee Scheme is a noble intervention. It’s essential that all parties play their role, including the government, lenders, and borrowers,” she said.
According to Korir, banks have restructured 54% of their total banking loan portfolio and are committed to supporting small businesses during this challenging period. She advised SMEs to work on their corporate governance framework and maintain accurate accounts to benefit from the government-backed Credit Guarantee Scheme.
