The banking industry provided Ksh 783 million in loans to Micro, Small, and Medium Enterprises (MSMEs) in 2023, the Central Bank of Kenya has revealed.
Speaking during the Inua Biashara Exhibition Event on Wednesday, October 16, President William Ruto said it represented an increase of about Ksh 75 billion.
"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.
"According to the Central Bank, our banks provided Ksh 783 billion in loans to MSMEs in 2023 which represents an increase of approximately 75 billion," Ruto said.
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Additionally, Ruto stated that the banking industry has pledged to double lending to MSMEs by providing Ksh 150 billion in new loans annually.
"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," he added.
Notably, Ruto's government has implemented several initiatives to support MSMEs including the Hustlers Fund, which represents a Ksh 50 billion annual commitment aimed at providing affordable credit specifically for informal sector workers and MSMEs.
In addition to the Hustlers Fund, the government is refurbishing Constituency Industrial Development Centers (CIDCs).
Furthermore, the Women Enterprise Fund has been relaunched with increased funding to specifically support women entrepreneurs.
