If we can guarantee education, water, or healthcare, why can't we guarantee financial access—the very thing that allows people to pay for these services and improve their lives? Julius Ouma, the Managing Director of Faulu Microfinance Bank writes.
In today’s world, we often discuss rights in terms of education, healthcare, or access to clean water. While these are all critical to our survival, and indeed our development, one of the most powerful enablers of dignity and opportunity is access to credit. Unfortunately, this is rarely framed as a human right, and yet, it should be.
Credit is not merely a financial instrument. It is the difference between survival and progress; between operating at the margins of the economy and building a livelihood with dignity. Without access to finance, a farmer cannot expand production, a small trader cannot stock inventory, and a young entrepreneur cannot scale an idea into a thriving business.
The ability of ordinary people to access and use credit should be treated not as a privilege for the few but as a right for all.
Without Credit, There Is No Freedom
Kenya has made strides in financial inclusion. According to the 2024 FinAccess survey, 84.8% of the population now has formal financial access, with credit usage rising to 64% of the total population. Yet beneath these gains lies a stubborn gap: Many Kenyans, especially women, and those in the informal sector still depend on unregulated sources like chamas, relatives, or shylocks.
While these informal systems are important, they cannot provide the scale or sustainability required to unlock long-term opportunity. For women, rural communities, and micro-enterprises, the barriers are even higher.
This exclusion is not trivial. It systematically denies people the agency to grow, invest, and participate fully in the economy.
Last-Mile Empowerment in Action
Faulu, established over 3 decades ago, is bridging this divide by focusing on Micro, Small, and Medium Enterprises (MSMEs). In 2024 alone, it financed 231 community enterprises across rural Kenya, reaching 830 customers who qualified for small, low-value loans. Many of these were informal groups and micro-entrepreneurs, invisible to mainstream banking.
Inclusive models also matter in a country for the underserved; where women-led enterprises face a $2 billion credit gap, youth unemployment remains stubbornly high, and the informal sector employs over 80% of Kenya’s workforce. Credit, designed inclusively, is the bridge.
Policymakers and financial institutions need to rethink financial inclusion, extending it far beyond just access to accounts. Its definition needs to move towards guaranteed access to capital, as credit is the missing pillar in Kenya's social and economic rights framework.
The future of credit is not only inclusive but also green. Increasingly, small loans are already being extended to households and small enterprises for solar home systems, clean cooking solutions, and water access projects. These not only reduce emissions but also cut household energy costs.
As Kenya positions itself as a green economy leader, community-level green lending will be critical. A small loan for a solar irrigation kit may seem minor in the national balance sheet, but for a farmer, it is the difference between food insecurity and surplus. For a village, it can mean the difference between vulnerability and resilience.
Access to credit needs to be reframed as a human right. If we can guarantee education, water, or healthcare, why not guarantee financial access—the very thing that allows individuals to pay for these services and improve their lives?
As Kenya works toward inclusive growth and climate resilience, the ability of ordinary people to access and use credit should be treated not as a privilege for the few but as a right for all.
The views expressed here are the author's own and do not necessarily reflect the editorial stance of The Kenyan Wall Street.
