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Browsing: Africa’s small businesses
- Small businesses struggle for credit as lenders channel 80 percent to Medium Sized Enterprises
- High collateral requirements and unfavourable interest rates have been found to disadvantage MSMEs
- Only 16 percent of businesses are reaping from Kenya’s formal MSMEs financing market valued at $45.4 billion (Sh5.9 trillion).
Only 1.1 million micro, small, and medium enterprises in Kenya have access to formal credit out of the total 7.4 million MSMEs in the country.
This equals only 16 percent of businesses reaping from Kenya’s formal MSMEs financing market valued at $45.4 billion (Sh5.9 trillion).
According to a new finding by pan African market insights firm Stears, despite MSMEs accounting for over 98 percent of businesses and contributing a substantial 40 percent to GDP formal financing is still small.
…“Despite their outsized economic impact, only 16 per cent of these vital enterprises currently access formal credit. With most MSMEs dependent on informal and