Nairobi, June 9 -- Both the fiscal imbalance and structure of monetary policy mean that Kenya continues to be a high interest rates environment. Further, the public sector has out-competed the private in the credit market for over a decade and half.

Under these circumstances, the role of Development Finance Institutions (DFIs) is urgent and critical.

We require DFIs because the industrial enterprises that they finance have long payback periods, need patient capital, and are unable to shoulder high interest rates. DFIs provide long-term capital and financial services to sectors of the economy or projects that are considered too risky for traditional commercial banks.

The latter prioritise short-term profitability and shareholder returns...