Digital lenders in Kenya are the new go-to persons for small and medium enterprises (SME’s) as they rely on them for funding more than banks who refuse to provide funds to small businesses. As of last year, the interest cap rate in the country was lifted to increase the provision of funds in that sector.
According to the Star the CEO of Jijenge Credit Limited, a local digital lender said: I expect to see the momentum carry on this year because of several factors especially regulatory reforms and the fact that more Kenyans have embraced this form of digital payments because of fast payments.
Small and medium enterprises are helping with the development of the Kenyan economy and this is possible because of the digital lenders that have been making funds available for the Kenyan fintech sector. The small businesses have been big contributors to the growth of the country’s GDP with is accounting for about 30%.
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Although a Macharia seems to believe that a huge chunk of the market with opportunity for digital lending is still left untapped and could attract more players with both local and foreign presence”. Which in the long run will be a good thing to have other big-money investors to invest in the country’s economy with thinking of such investments as a terrible trade.
According to the Kenya National Bureau of Statistics (KEBS), SMEs also represented the high development in creating jobs which created about 83.6% of the 846,000 jobs created in various sectors in the country.
President Uhuru Kenyatta’s SME agenda is the drive of most of the agencies in the country like IDB Capital Industrial, Commercial Development Corporation, the Kenya Industrial Estate, the Kenya National Trading Corporation and the rest to ensure that the country empowers its citizens that have SME’s and put them on a higher platform that connects them to international borders.
It is just wonderful seeing a country working so hard to improve its status to the world and be the next tech-hub in the whole of Africa.
