CBK Governor Patrick Njoroge said that while there had been an overall reduction in lending to MSMEs, the reduction of credit to the sector was by large lenders. On the upside, however, small banks had snapped up the customers turned away by the big players. This has seen a rise in the amount of loans being advanced to the MSMEs by the small banks. Njoroge said since the interest rate cap law came into force, there has been a growth in the number of loan applications, but borrowers were increasingly asking for lower value loans. “Loan applications grew, especially the smaller-size loans.

Source: Standard Digital May 30, 2017 20:48 UTC