The government plans to guarantee mobile phone loans to small traders in a bid to increase supply of credit. Sacco loans are also to be made part of the State-backed credit guarantee scheme under which the State will pay part of the defaulted mobile loans.
The credit guarantee scheme introduced in 2020 has until now had a low uptake. The State-backed credit guarantee scheme was initially meant to provide greater credit access to small and medium-sized businesses, covering 25 percent of the credit in the event of default of the loan.
