CBK roots for Treasury SMEs credit guarantee

Central Bank of Kenya (CBK). FILE PHOTO | NMG

The Central Bank of Kenya (CBK) is calling for the speedy establishment of a credit guarantee scheme to shield lenders and small businesses against the economic effects of the Covid-19 pandemic.

Under the proposed scheme, the Treasury said last year it would provide third-party credit risk mitigation to commercial banks by absorbing a portion for losses on small and medium-sized enterprises (SMEs) loans in the event of default.

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