David Mukaru

CEO's Profile

Theme | Supporting Post Covid-19 Enterprise Recovery, Resilience
Topic | Strategies of Enhancing SME & Household Access to Credit
MONTH | May 2021

The Covid-19 pandemic has had a heavy toll on businesses, affecting operations and scaling down their ability to access credit. According to the Central Bank of Kenya, about 75 percent of Small and Medium-sized Enterprises (SMEs) face uncertainty if they are unable to securecreditfrom banks or equity partners. Similarly, the World Bank Group in 2020 estimated that informal workers and the youth make up 70 percent of the population in Kenya – accounting for 83 percent share of employment. The formal sector took up 16 percent share of employment and about 1 percent are self-employed in 2019, according to the Kenya National Bureau of Statistics. Covid-19 containment measures have caused significant income loss for millions of low-income households, with millions having already lost their jobs. With the lifting of the Central Bank of Kenya monetary interventions and government-led fiscal boosts, the banking industry continues to make efforts towards enhancing access to credit for both households and businesses.