How to make State credit guarantee scheme work for small businesses

Kenya’s small and medium enterprises (SMEs) have struggled the last five years owing to recurring challenges associated with technology, market intelligence, access to finance, polices, information and management, among others.

These challenges seem to be cyclical and underpinned by government action or inaction, including late payment of dues to SMEs, heavy local borrowing, slowdown from heightened political activities, a shrinking export market, a shrinking local market due to competition from cheap Chinese imports and incoherent tax system.