How high interest rates impede credit access by small businesses

The report notes that before joining the programme, 63 per cent of enterprises did not have access to any credit from a financial institution. [iStockphoto]

High interest rates made micro, small and medium enterprises (MSMEs) avoid applying for loans. This is even as a report by the bankers' association shows over Sh5.5 billion was disbursed to these businesses over the last five years.

The report, which documents the strides of the Inuka Enterprise Programme, an initiative of the Kenya Bankers Association (KBA) targeting small businesses, details how the programme has facilitated financial inclusion.