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2 clusters · 11 sources · 5 days · First seen · Last updated

SME financing trends in Kenya

Overview

Kenya’s small and medium-sized enterprises (SMEs) are navigating a tightening credit environment. Data from the Central Bank of Kenya indicates a decline in MSME loan accounts, falling from 1.18 million in 2022 to 890,000 in 2024, with their share of total banking sector loan accounts dropping from 8 per cent to 6 per cent.

In response to these financing gaps, new credit options have emerged. NCBA and HEVA Fund launched a KES 20 million ‘Start-Up Incubator’ facility specifically for the creative economy. This unsecured product offers a 9% interest rate for up to six months, which is notably lower than the commercial banks’ weighted average lending rate of 14.39% reported in July 2026.

Additionally, Ngao Credit introduced the ‘Jijenge 90-Day Supplier Loan’, providing between Ksh100,000 and Ksh4 million to assist businesses in fulfilling confirmed tenders. Unlike the creative industry facility, these loans are secured by vehicles.

Entities

HEVA Fund · NCBA · Kenya · Central Bank of Kenya · Ngao Credit

Timeline

  1. 12 days ago

    [BUSINESS] 8 sources
    Kenya SMEs face credit squeeze as new financing options emerge

    Kenyan SMEs face a shrinking pool of formal credit as MSME loan accounts decline. In response, Ngao Credit and the NCBA-HEVA partnership have launched new financing facilities to support businesses and creators

  2. 17 days ago

    [BUSINESS] 3 sources
    NCBA and HEVA Fund launch KES 20M financing for Kenya’s creative economy

    NCBA and HEVA Fund have launched a KES 20 million zero-security financing facility to support Kenyan creative entrepreneurs and SMEs with tailored, short-term loans.

Sources

biznakenya.com · businesselitesafrica.com · businesstoday.co.ke · cbn.co.za · impactalpha.com · insidepolitic.co.za · laidlawscholars.network · newstrends.co.ke · smesouthafrica.co.za · tech-ish.com · uzalendonews.co.ke