Central bank says drop in SME loans risks jobs, growth

A Barclays Kenya official assists a Barclays customer during the lender's SME campaign open day in Eldoret on June 17, 2016. PHOTO | FILE | NMG

The Central Bank of Kenya (CBK) has warned that the decline in lending to small enterprises since the introduction of the legal cap on loan rates threatens jobs and economic growth.

Latest CBK data shows bank lending to micro, small and medium size enterprises (MSMEs) fell by 5.7 per cent between August and April, even as lending to big business and individuals starts to pick up.

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