MSMEs in Kenya cannot access affordable financing from traditional banks

Small and medium-sized enterprises in Kenya face severe barriers to obtaining credit from commercial banks, forcing them to rely on expensive informal lending or forgo growth opportunities. Traditional banks view MSMEs as high-risk, unprofitable customers due to lack of collateral and credit history, leaving a massive underserved market segment desperate for capital. Even with international development bank backing ($100M+ initiatives), the gap remains unfilled, indicating current banking infrastructure and lending products fail to serve this critical economic segment.