The Kenya National Chambers of Commerce and Industry (KNCCI) has stepped up efforts to push access to credit for Small and Medium Enterprises (SMEs), positioning the sector as a catalyst for Kenya’s economic growth.
Addressing delegates at the 2024 National Credit Conference organized by Metropol Corporation Limited in Naivasha, Ken Onditi, the KNCCI National Director for the Nyanza Region, underscored the pressing need to resolve challenges that hinder SME growth. These include punitive credit terms, short loan tenures, and high-interest rates.
In his capacity as Chairman of the Kenya-Turkey Joint Business Council, he reiterated KNCCI’s unwavering commitment to working with stakeholders to unlock the immense potential of SMEs, fostering sustainable economic development in the process.
Onditi, who represented KNCCI Chamber President Dr. Erick Rutto, stressed the role of data in transforming credit accessibility and affordability.
“Data holds the key to unlocking opportunities. We must integrate systems, analyze data effectively, and eliminate barriers to create a credit ecosystem that benefits both lenders and borrowers,” Onditi stated.
In the realm of credit access, Onditi pointed out Metropol’s initiatives such as Credit Community, CRB Mtaani, and the National and Continental Credit Market Forums that are empowering Kenyans to better understand the dynamics of credit assessment and pricing.
He called on stakeholders to prioritize collaboration and build a robust data-sharing framework to enhance transparency and ease access to credit.
“Platforms like CRBs showcase the potential of shared data. The conversation around data integration and innovation is vital for building a credit system that fosters growth,” he added.
KNCCI is optimistic about Kenya’s business future, citing the need for a stable interest rate regime, reduced government borrowing, and the establishment of specialized financial institutions, including industrial, agricultural, and export guarantee banks offering competitive interest rates of 12 percent or below.
The 2024 National Credit Market Convention proved to be a significant platform for players in the credit market to engage with the regulators and policymakers. The conference served as a crucial platform for addressing credit market barriers and underscoring the role of credit access in driving SME performance and economic growth.
The just ended two-day conference, themed “Leveraging Data and Market Insights to Drive Sustainability in the Credit Market”, convened over 200 stakeholders to explore sustainable solutions for creating a favorable business environment in Kenya.
