No logbook, no title deed: Ruto proposes new bank lending model
By David Nthua, June 27, 2026It is likely to come as welcome news to many Kenyans who have long struggled to access bank credit due to a lack of collateral.
This is after President William Ruto, on Saturday, June 27, 2026, promised to initiate talks with commercial banks to develop a lending model that would enable Kenyans to access loans without having to present logbooks or title deeds.
The Head of State spoke at the Kenyatta International Convention Centre (KICC) in Nairobi during the World MSME Day celebrations, an event attended by Cooperatives and MSMEs, Cabinet Secretary Wycliffe Oparanya, among other leaders and stakeholders.
Ruto’s proposal
Addressing the gathering, President Ruto said the government wants banks to consider a borrower’s repayment history, particularly through the Hustler Fund, instead of relying solely on traditional collateral.
“Nataka tuketi chini na ndugu zetu wa benki, tukubaliane. Hawa wananchi, mtu ako na biashara yake anahitaji elfu ishirini, elfu mia mbili, tunaweza mpatia namna gani hiyo pesa bila ya kumuuliza alete logbook kwa sababu hana, ama title deed kwa sababu hana, lakini ako na track record ya kulipa akikopa?”
He added:
“We must use somebody’s track record, na hiyo track record tayari tumetengeneza kupitia Hustler Fund.”
The President suggested that a person’s loan repayment history could become a basis for determining creditworthiness, particularly for micro, small and medium-sized enterprises (MSMEs) and small business owners who may not own assets traditionally accepted as collateral.
Rethinking lending
Ruto also urged financial institutions to reconsider how they assess borrowers, saying many Kenyans who are currently considered “unbankable” have demonstrated financial discipline.
“How do we unlock sustainable financing for Kenya’s MSMEs? The answer may lie in rethinking who we consider ‘bankable.’
“Drawing inspiration from Muhammad Yunus and Grameen Bank, the call is for banks to see Kenya’s unbanked not as a risk, but as the country’s greatest untapped economic opportunity.”
The remarks signal the government’s intention to explore alternative credit assessment models that rely more on repayment behaviour than ownership of assets such as land or motor vehicles.
Industry response awaited
By the time of publication, the Kenya Bankers Association had not publicly responded to the President’s proposal.
Similarly, the National Treasury and Economic Planning Ministry, the Central Bank of Kenya and individual commercial banks had not issued statements indicating whether they would adopt or support such a lending framework.
Should discussions proceed, any changes to commercial lending policies would likely require engagement between the government, financial regulators and banking institutions.