{
  "id": 19825601,
  "title": "Kenyan banks expand MSME loan book by 30% to Ksh 424B",
  "url": "https://urgent.news/2026/11/13/kenyan-banks-expand-msme-loan-book-by-30-to-ksh-424b",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-13T14:38:26.000Z",
  "source": {
    "name": "KBC",
    "slug": "kbc",
    "url": "https://www.kbc.co.ke/kenyan-banks-expand-msme-loan-book-by-30-to-ksh-424b/"
  },
  "original_language": "en",
  "account": "Kenyan commercial banks have significantly expanded their lending to Micro, Small and Medium Enterprises (MSMEs) by 30% over the past nine months, reaching a total of Ksh 424.7 billion. This growth comes as the cost of borrowing has decreased. According to the Kenya Bankers Association (KBA), MSME lending increased from Ksh 326.5 billion in the same period last year.\n\nEquity Bank led the way in MSME lending, disbursement totaling Ksh 128 billion, which is equivalent to 30.1% of the total loans. The bank's disbursements were more than double those of its closest competitor, Co-operative Bank, and more than three times the volume provided by third-ranked KCB. Equity Bank's capital provided to small enterprises far exceeded the combined lending of the second and third-ranked lenders.\n\nThe KBA attributes the sustained credit growth to a more favorable macroeconomic climate, characterized by a softer borrowing cost environment and increased demand for private enterprise. During the period reviewed, commercial bank lending rates decreased to 14.4% in September 2026, down from 17.2% in November 2024.\n\nThe KBA also reported improvements in loan repayment during this period, with the gross non-performing loan ratio contracting to 13.9% from 14.8% in June 2026 and 17.6% in August 2025. This reduction in bad loans is attributed to sound credit risk appraisal practices across the industry and healthier cash flows among operating businesses, as supply chain bottlenecks and inflationary pressures have eased.",
  "summary": "Local commercial banks increased their lending to Micro Small and Medium Enterprises by 30% in nine months of the year to hit Ksh 424.7 billion as credit cost fell. According to data by the Kenya Bankers Association, MSMEs lending increased from Ksh 326.5 billion registered over same period in 2025 as the industry is poised […] The post Kenyan banks expand MSME loan book by 30% to Ksh 424B…",
  "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."
}