Central Bank of Kenya Urges Banks to Prioritize MSME Impact Over Credit Volume
What happened
The Central Bank of Kenya urged financial institutions to evaluate the impact of their financing on businesses, jobs, and livelihoods, particularly for Micro, Small and Medium Enterprises (MSMEs). Betty Korir, Vice Chairperson of the Kenya Bankers Association, noted that banks had provided Sh246 billion in new loans to MSMEs by mid-2026 and aimed for Sh500 billion by the end of the year. The Central Bank of Kenya Governor also noted that private sector credit growth reached 10.4 percent in August 2026, while average commercial bank lending rates dropped to 14.3 per cent.
From capitalfm.africa
Why it matters
The remarks signal a policy emphasis shift toward supporting sustainable economic activity and improving livelihoods in Kenya. Officials called for banks to measure lending based on the wealth and jobs created, rather than solely the volume of credit extended.
From capitalfm.africa
Who's involved
- Central Bank of KenyaUrged banks to look beyond loan amounts and focus on the impact of financing on businesses and livelihoods.
- Betty KorirStated that banks provided Sh246 billion in new loans to MSMEs by mid-2026.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- KenyaSpeculative
Financial institutions might adjust lending criteria to support MSMEs and green financing, potentially affecting business demand and investment.
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The entities involved
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Kenya
country in Eastern Africa
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Central Bank of Kenya
central bank
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