Kenya’s banking sector is expected to disburse more than KSh 400 billion to small and medium-sized enterprises by the end of 2026, even as lenders continue to grapple with elevated non-performing loans. According to the lenders’ umbrella body, the Kenya Bankers Association, the push to increase lending to SMEs comes as the cost of credit continues to ease following a series of monetary policy easing cycles by the Central Bank. As Jimmy Mbogoh now reports, customers should expect to see a repricing of their loans even as the Central Bank signals on-site inspections of banks to assess credit pricing models.
