President William Ruto has urged a fresh approach to financing micro, small and medium enterprises (MSMEs), stressing that lack of affordable credit continues to be the greatest challenge facing the sector.
Speaking during the 2026 World MSME Day celebrations at the Kenyatta International Convention Centre (KICC), Ruto acknowledged government efforts to support entrepreneurs but insisted that financing remains the critical barrier to growth.
“This is the heavy lifting the government has undertaken. But none of it will be enough until we break the one barrier that still holds our MSMEs back: access to affordable finance,” he said.
The President pointed out that Kenya’s MSME financing gap stands at about Sh3 trillion, noting that the government alone cannot bridge the shortfall. He referenced World Bank estimates showing that small businesses across developing economies face a financing gap of more than $5 trillion (Sh650 trillion).
“Government funds can catalyse and prepare our people for credit. But the government alone cannot close a Sh3 trillion financing gap. The private sector can,” Ruto explained.
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He highlighted ongoing reforms aimed at strengthening credit access, including efforts to recognize borrowers’ repayment discipline. More than eight million Kenyans previously listed negatively on CRB have been given a second chance, with over two million already rebuilding their credit profiles and rejoining the formal economy.
“Now we are turning that credit history into a National Credit Score, so that character and behaviour, not just a title deed or a logbook, can unlock financing,” Ruto said.
The President also challenged commercial banks to expand lending to small enterprises. He noted that while lenders have extended about Sh1 trillion in enterprise financing over the past three years, the majority of micro and small businesses remain excluded.
“This is neither a complaint nor a lamentation. It is an invitation,” he said. “Today, here, I want to begin an honest national conversation with the private sector on the central question of our economic future: How do we sustainably unlock financing for the Kenyan MSME?”
By Masaki Enock
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