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Financing for Micro, Small, and Medium-sized Enterprises in Kenya

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posted on 2025-02-07, 10:57 authored by Kier Macdonald

This rapid evidence review assesses the recent academic and grey literature on the topic of financing for micro, small and medium-sized enterprises (MSMEs) in Kenya . The literature reveals a dearth of highly-cited papers on the topic, and while there are a number of studies which are positive on the effectiveness of different types of financing on the performance of MSMEs, there is scope for further literature which engage with the potential risks or problems associated with different financing methods. The literature demonstrates that the landscape for MSME financing in Kenya is relatively fragmented, with commercial banks dominating lending to MSMEs, but with a growing number of other lenders such as microfinance banks (MFBs), savings and credit cooperative organisations (SACCOs), and unregulated microfinance institutions (MFIs) and informal lenders.

History

Publisher

Institute of Development Studies

Citation

Macdonald, K (2024) Financing for Micro, Small, and Medium-sized Enterprises in Kenya. K4DD Rapid Evidence Review 32. Brighton, UK: Institute of Development Studies, DOI: 10.19088/K4DD.2025.006

Series

K4DD Rapid Evidence Review 32

IDS Item Types

K4DD Rapid Evidence Review; Series paper (non-IDS)

Copyright holder

© Crown copyright 2024

Country

Kenya

Language

en

Pagination

17pp

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