Back the credit guarantee scheme with full funding

Business loan concept. FILE PHOTO | NMG

It is worrying that the government is going slow on the plan to help small and medium-sized businesses access credit from banks.

The supplementary budget shows that the Treasury has scrapped a Sh1 billion allocation to a credit guarantee scheme which enables banks to lend more to SMEs on the confidence that the State will absorb up to a quarter of the potential defaults.

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Note: The results are not exact but very close to the actual.