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Experts fault State for SMEs credit crunch
Ms Winnie Ngumi (in red), Mr Mukesh Desai and Ms Leah Wambui, who were among the guests who attended the Kenya Top 100 Mid-sized companies’ Survey 2019 presentation at KPMG offices in Nairobi on September 12, 2019. PHOTO | SALATON NJAU
Heavy government borrowing from commercial banks is to blame for the biting credit crunch facing Small and Medium Enterprises (SMEs), experts have said.
Head of debt advisory at audit firm KPMG East Africa Nigel Smith said that banks, driven by the interest rate capping law introduced in 2016, have opted to lend to the government, which is less risky compared to SMEs.
