Local commercial banks increased their lending to Micro Small and Medium Enterprises by 30% in nine months of the year to hit Ksh 424.7 billion as credit cost fell.
According to data by the Kenya Bankers Association, MSMEs lending increased from Ksh 326.5 billion registered over same period in 2025 as the industry is poised enhance credit to small businesses.
“This sustained financing momentum places the banking sector within striking distance of its Ksh 500 billion full-year target, setting the stage for the country to register its highest-ever annual lending volume to small businesses,” said KBA.
The data reveals that Equity Bank disbursed the largest share of credit to MSMEs totaling Ksh 128 billion which is equivalent to 30.1% of total loans.
“The bank’s disbursements were more than double those of its closest peer, Co-operative Bank, and more than three times the volume recorded by third-placed KCB. In fact, Equity provided more capital to small enterprises on its own than the second- and third-ranked lenders combined,” the association stated.
Co-op Bank emerged as the second largest issuance of loans to the sector totaling Ksh 60.3 billion equivalent to 14.2% of total loans.
In nine months of the year to September 226, KCB Bank, Family Bank and NCBA disbursed Ksh 41.1 billion, Ksh 31.8 billion and Ksh 25.9 billion respectively.
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