Narok Senator Ledama Olekina has called on the government to expand the services of the Kenya Credit Guarantee Company (KCGC) further into the countryside beyond Nairobi, saying the programme will only take effect if it reaches rural counties with the most small businesses with the biggest challenges in getting funds.

Writing on X on Saturday, June 27, 2026, Olekina said in a statement that the setting up of the Kenya Credit Guarantee Company (KCC) is a good initiative but noted that their achievement should not be measured by policy announcements.

“The Kenya Credit Guarantee Company is a good idea on paper, but its promise will only matter if it reaches the rural counties where small businesses struggle most. We cannot keep talking about inclusive finance while major MSME conversations and opportunities remain centred in Nairobi, leaving the real grassroots entrepreneurs behind,” Olekina said.

The Kenya Credit Guarantee Company is a concept that, on paper, looks great, but its relevance will only be felt if it’s able to trickle down to the rural counties where small businesses are most affected.

The senator condemned a tendency to put all financial inclusion programmes, policy discussions and investment opportunities in the capital, leaving rural Kenya’s entrepreneurs disadvantaged.

The government has been putting efforts to facilitate the availability of affordable credit to the majority of businesses and employment opportunities in the country, the Micro, Small and Medium Enterprises (MSMEs); in this context, his remarks come as welcome news. To promote financial institutions to lend to businesses with less collateral, the Kenya Credit Guarantee Company was created to share the risk of financial institutions.

But Olekina said that by not being available to entrepreneurs in counties with the most severe financing gaps, Olekina is at risk of not achieving its primary goal. Limited banking services, lack of information on financial products available and strict lending conditions are still problems that many rural businesses are facing, he added.

The senator said meaningful financial inclusion should take government programmes to the local communities and not leave it to the entrepreneurs to go to Nairobi to get information, skills or loans.

He asked the government to strengthen MSME forums and to have them decentralised, establish robust outreach programmes at the county level, and work closely with financial institutions and business associations to ensure that all entrepreneurs in the country have equal access to the credit guarantee scheme.

Olekina said the empowerment of rural businesses would give a boost to the local economy, generate employment and mitigate regional inequalities, while inclusive economic growth could only be realised when financing programmes were available to those enterprises that needed them.

World’s Micro, Small and Medium Enterprises (MSME) Day celebrations

His comments come as part of the ongoing discourse about the government’s policies and programmes targeting MSMEs, where stakeholders are demanding that the financial services providers be based in all the 47 counties and not just the major urban centres to provide equal opportunities to access business equity.

The sentiments from the lawmakers come as President Ruto leads the nation at the Kenyatta International Convention Centre (KICC) in Nairobi in marking the World Micro, Small and Medium Enterprises (MSME) Day celebrations.

The event has brought together government officials, development partners, financial institutions, entrepreneurs and business leaders to discuss strategies for strengthening Kenya’s MSME sector, which remains a key driver of employment and economic growth.

The World MSME Day celebrations provide a platform to showcase government initiatives designed to empower small enterprises, including efforts to expand financing through the Kenya Credit Guarantee Company and other business support programmes.

The event features exhibitions by entrepreneurs, panel discussions and the unveiling of new initiatives geared towards enhancing the growth and competitiveness of MSMEs across the country.