Banks disbursed Ksh81B to small businesses from January to May
By Nancy Marende, July 2, 2025Kenyan banks disbursed Ksh81.4 billion to Micro, Small, and Medium Enterprises (MSMEs) in the country between January and May 2025.
According to the Kenya Bankers Association (KBA), the disbursement supported enterprise growth, job creation, and community development.
In a statement on Wednesday, July 2, 2025, KBA revealed that Equity Bank disbursed Ksh24.9 billion, Cooperative Bank Ksh12.6 billion, I&M Ksh11.3 billion, Kenya Commercial Bank Ksh11.1 billion, and Stanbic Bank Ksh5.2 billion.
Similarly, National Bank disbursed Ksh2.7 billion, Commercial International Bank Ksh2.4 billion, Absa Bank Kenya Ksh2.4 billion, Sidian Bank Ksh1.8 billion, and Gulf African Bank Ksh1.2 billion.
“The contribution marks progress towards the industry’s commitment of Ksh150 billion in new loans annually to drive MSME growth starting in 2025,” read the statement.
CBK’s approval of DCPs
Additionally, the association revealed that the disbursement supported trade, real estate, transport, manufacturing, and construction.
“During this period, Kenya’s banking industry continued to extend credit to MSMEs across key sectors, enabling enterprise activity and contributing to economic development.”
This comes after the Central Bank of Kenya (CBK) announced the approval of 41 new Digital Credit Providers (DCPs), bringing their number to 126 to spur credit growth to small businesses that big market players often overlook.
In a statement on June 5, 2025, CBK revealed that it had received more than 700 applications since March 2022 and had worked closely with the applicants to review their applications.
“Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner,” the bank said in a statement.
DCPs are non-deposit-taking financial institutions that offer short-term loans through digital platforms such as the internet or mobile apps.
According to the Central Bank Act, 2021, any person in the digital credit business is required to apply for a licence from CBK.
CBK said engagements with applicants have covered issues such as business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management.
“This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” added CBK.