Betty Korir

CEO's Profile

Theme | Supporting Post Covid-19 Enterprise Recovery, Resilience
Topic | The Credit Guarantee Scheme & SME Credit Access
MONTH | May 2021

The volatility of the COVID-19 pandemic has adversely changed the global economic landscape. The widespread lockdown owing to the health crisis is estimated to cost the Continent over USD 65 Billion, according to Brookings Institute. Right here in Kenya, Micro, Small and Medium-sized Enterprises (MSMEs) have felt the brunt of harsh economic conditions. As much as the banking sector has proven its resilience and key role in anchoring the economy, the need for sound and effective policies has never been more imperative. Among the several timely responses by the National Treasury and Central Bank of Kenya to bolster the economy is the recently launched Credit Guarantee Scheme for SMEs. The Government through the Public Finance Management Regulations (2020) has set up a KES. 3 Billion stabilization facility to enable the participating extend credit to MSMEs that meet the requirements, including compliance with tax obligations and business permits and having a good credit standing. The finance will be utilized for working capital, acquisition of assets and recovery from COVID-19 impacts.