This archive report was first published on 10 December 2019.
December 10, 2019, Nairobi — Kenya's private sector is calling on the Central Bank of Kenya (CBK) to review its cash reserve policy to boost women-owned businesses.
As the country faces a tough macro and regulatory environment, the Kenya National Chamber of Commerce & Industry (KNCCI) is proposing that CBK reduce the cash ratio from 5.25 percent to at least 3 percent to stimulate liquidity and lower interest rates.
This move, according to KNCCI Chairman Jimnah Mbaru, will help support the government's efforts to lower the cost of financing its domestic debt, with zero inflation, given the continued adequate rainfall and stability of oil prices.
"Among other things, this will immediately increase liquidity which will lower interest rates and boost private sector lending. To make this effective, lenders should be encouraged to follow this with an increase in the proportion of lending to women-led enterprises," said Mbaru.
Additionally, Mbaru emphasized the need for entities to clear pending bills, as it is affecting many businesses negatively, leading to job loss and closure of businesses.
"We know failure to pay these bills over the last four to five years has led to the closure of a lot of women-owned enterprises leading to loss of jobs and affecting families across the country," he added.
President Uhuru Kenyatta had earlier directed all state ministries, departments, and agencies to clear their pending bills by June 30, 2019, but the deadline was later extended to November 30, 2019, by the Head of Public Service Joseph Kinyua.
