New accounting rules to fuel SME loans drought

KBA chief executive Habil Olaka. FILE PHOTO | NMG

Loans to the micro, small and medium-sized enterprises are likely to be hit further by the onset of new global accounting standards in January, bankers have said.

Kenya Bankers Association chief executive Habil Olaka said smaller enterprises, which have borne the brunt of credit crunch because of rate cap law, will face more stringent conditions in accessing loans when the International Financial Reporting Standard (IFRS) 9 comes to force.

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