President Ruto hails banks for supporting growth of Kenyan MSMEs

President William Ruto has praised the local banking sector for its role in boosting the growth of medium and small market enterprises (MSMEs).

Speaking during the opening of the Kenya Bankers Association Inua Biashara Exhibition Event at the Kenyatta International Convention Centre in Nairobi on Wednesday, Ruto said banking institutions have demonstrated their commitment to expanding lending to the MSME sector.

“This commitment is significant and impactful. According to the Central Bank, our banks provided Ksh.783 billion in loans to MSMEs in 2023, which represents an increase of approximately Ksh.75 billion,” Ruto said.

“As we launch the MSME Accelerator Programme today, let us reflect and collaborate in advancing its stated aim of boosting small businesses' capabilities through comprehensive assessments, advanced training and tailored support from public and private sector partners, as well as development finance institutions.”

Ruto further commended the banking industry for tax compliance, noting that in 2023, the sector contributed Ksh.190 billion in taxes, reflecting its performance and potential.

“These funds significantly support the government’s efforts to improve infrastructure, enhance public services, and promote robust economic activity,” said the President.

He expressed optimism that the banks’ support will facilitate MSMEs to develop scalable business models, strengthen financial management skills and gain access to investors, markets and formal credit.

“I commend the banking industry’s pledge to double lending to MSMEs by providing Ksh.150 billion in new loans annually, beginning in 2025,” Ruto said.

He pledged the government’s support through policy and institutional backing, including measures to guarantee the prompt payment of all pending government bills upon completion of the ongoing verification process.