- Government explores new ways to improve MSME financing
- Talks focus on making credit more affordable for businesses
- Stakeholders seek financing options that support business growth
Kenyan Micro, Small and Medium Enterprises (MSMEs) could gain greater access to affordable credit following talks between the Micro and Small Enterprises Authority (MSEA) and the European Investment Bank (EIB) Global.
Principal Secretary for MSMEs Susan Mang’eni hosted a delegation from EIB Global led by Edward Claessen, Head of Regional Hub for East Africa, alongside Senior Investment Officer Faith Njoroge and Kenya Country Manager and Loan Officer for East and Southern Africa, Public Sector, Ann Masiga.
The discussions focused on ways to expand access to affordable and patient capital for MSMEs, which continue to face challenges in accessing financing to grow their businesses.
The talks explored how EIB credit lines can help financial institutions provide financing to MSMEs on more favourable terms, including longer repayment periods and competitive pricing.
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Such financing is expected to give lenders greater flexibility in managing credit risks while making loans more affordable for small businesses.
The EIB is the lending institution of the European Union, owned by the 27 EU member states, and supports investments aligned with EU policies and the priorities of partner countries. Its Nairobi office serves as the bank’s Regional Hub for East Africa and is its largest office outside Europe.
The EIB has previously signed financing agreements worth about €500 million, equivalent to approximately Ksh70 billion, with commercial banks in Kenya.
The latest engagement comes as the government seeks to improve access to finance for MSMEs, which play a key role in employment creation and economic activity.
The meeting brought together stakeholders from MSEA and the State Department for MSME Development as they explored opportunities to unlock more financing for businesses and support their expansion.
By Lizzy Aluga
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