There’s a cash windfall for small businesses

Stack of coins

This is one of the best times to be an entrepreneur. If you’re looking for a capital boost to get a business started or to expand one, you’ve got several financing options set aside for small and medium enterprises to choose from.

While there’s a definite interest in growing the SME sector, mobile money trends have also helped boost lending.

After years of experimenting with different business models and learning from the success of M-Pesa, foreign investors have now set their sights on mobile lending based on data patterns.

Financial service providers are shifting the country’s credit market, lending out billions of shillings to SMEs and low-income earners based on factors like smartphone activity.

This means information such as how often and how much we transact on our mobile money accounts, who we communicate with, our location and more can be aggregated to create a credit profile.

These are some of the credit lines made available by foreign investors to financial tech firms and commercial banks in Kenya for onward lending to small businesses.

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