Nairobi, July 1 -- Despite being the heartbeat of local commerce and accounting for the vast majority of new jobs created annually, micro, small, and medium enterprises (MSMEs) remain trapped in a severe credit crunch.

Data from the revised MSME policy review reveals that small businesses require roughly Sh4 trillion in market loans to sustain and expand their operations. Yet, commercial banks currently supply only Sh700 billion.

This massive funding gap highlights the persistent barriers that local entrepreneurs encounter when trying to access formal credit. The root cause of this deficit lies in an exclusionary financial framework.

Traditional banking models rely heavily on physical collateral and formal records, yet because many loc...