# SME financing trends in Kenya

> Live situation record from CLSTR: https://clstr.news/situations/sme-financing-trends-in-kenya
> Updated: 2026-08-31T10:35:58.000Z. Sources: 11. Developments: 2.

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.

## Timeline

### 2026-08-31: 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

8 sources. https://clstr.news/cluster/kenya-smes-face-credit-squeeze-as-new-financing-options-emerge

### 2026-08-26: 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.

3 sources. https://clstr.news/cluster/ncba-and-heva-fund-launch-kes-20m-financing-for-kenyas-creative-economy

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Cite as: SME financing trends in Kenya. CLSTR, https://clstr.news/situations/sme-financing-trends-in-kenya