The disconnect is particularly pronounced among small and medium-sized enterprises, which claim they are yet to see a meaningful increase in access to credit despite the adoption of risk-based credit pricing. As the banking sector celebrates the growth of credit to the private sector, a clear and distinct disconnect is emerging.The disconnect is particularly pronounced among small and medium-sized enterprises, which claim they are yet to see a meaningful increase in access to credit despite the adoption of risk-based credit pricing.The latest credit data from the Central Bank shows that credit to the private sector grew by 10.2 percent. According to the Kenya Bankers Association, the growth is partly attributable to the risk-based pricing model.But the question remains: Has the growth translated into easier or more affordable financing for businesses and customers?According to the National Taxpayers Association, micro, small and medium enterprises remain Kenya's most credit-constrained segment, partly due to the nature of their typically short-term borrowing.The association argues that although banks have publicly doubled their collective MSME lending commitment to more than Ksh.350 billion, the amount remains modest when compared with the Ksh. 2.54 trillion that banks hold in government securities and public debt.“The scale of this commitment should, however, be read against t...
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