The Central Bank of Kenya (CBK) revealed plans to set up a Ksh100 billion kitty to cushion distressed businesses due to COVID19.
Dr. Patrick Njoroge, CBK’s governor, said they are collaborating with member banks to provide affordable lending to micro, small and medium enterprises (MSMEs). The governor laments that under the current credit regime, interest rates charged would be high thus limiting access for businesses that need funding the most.
In addition, borrowers risk defaulting on loan repayments as firms record low orders, sales, and reduced cash flow.
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