{
  "id": 12858439,
  "title": "SMEs Need Financing That Matches Business Stage, Family Bank Officials Say",
  "url": "https://urgent.news/2026/10/08/smes-need-financing-that-matches-business-stage-family-bank-officials",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T11:14:01.000Z",
  "source": {
    "name": "Capital Business",
    "slug": "capital-business",
    "url": "https://capitalfm.africa/smes-need-financing-that-matches-business-stage-family-bank-officials-say/"
  },
  "original_language": "en",
  "account": "Small and medium-sized enterprises (SMEs) require financing that accurately reflects their cash-flow patterns, business stage, and growth plans, according to officials from Family Bank. Nicholas Kariuki, a financial products specialist at Family Bank, emphasized that cash-flow management can be a significant challenge for businesses, especially when payments are received after expenses are due. He stated that businesses may need to purchase stock, pay suppliers, or meet other operating costs while awaiting payments, resulting in a gap that can be addressed through various forms of financing. Daniel Azenga, Family Bank's Asset Financing and SME Specialist, added that financing needs evolve as a business progresses from startup to growth and becomes mature. He provided an example of a hardware business in Kitengela, noting that a new enterprise initially requires working capital for stock and payment collection, while a growing business may need asset financing for vehicles or equipment. As a business matures, it may require trade finance, investment, and succession solutions. Both Kariuki and Azenga stressed the importance of understanding the specific cash flow cycle of each SME and tailoring financing accordingly. They also discussed the need to move away from reliance on traditional collateral-based lending and instead consider a business's cash flow performance and management. The Central Bank of Kenya's 2024 Survey Report on MSME Access to Bank Credit revealed that the value of SME loan portfolios reached KSh784.3 billion, with MSME loans accounting for 21.4% of the total banking sector loan portfolio by value in December 2024. Commercial banks charged an average interest rate of 16.4% on MSME facilities compared to 26.3% among microfinance banks. Lenders are increasingly using technology to gather additional data points to assess businesses, especially as more transactions occur through digital platforms. The officials cautioned against using financing facilities for purposes that do not align with the business structure, emphasizing the importance of understanding the customer's business before determining the appropriate financing product.",
  "summary": "NAIROBI, Kenya, Oct 8 – Small and medium-sized enterprises need financing that reflects their cash-flow patterns, business stage and growth plans, Family Bank officials have said, noting that businesses can…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}