Size of loans up but small firms ejected from lending market

CBK Governor Patrick Njoroge. file photo | nmg

The average loan size has risen from Sh400,000 to about Sh600,000 since the debut of the rate capping law in September 2016 as lenders shower large borrowers, deemed less risky, with cash.

Bank and microfinance numbers for up to February this year show that lenders continue to shun small firms.

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