(Ecofin Agency) - Kenya announced the upcoming launch of a credit guarantee facility worth $92 million for businesses across the country. The new scheme mainly targets micro, small, and medium enterprises, which significantly contribute to the economy. It is expected to be operational from October 2020.

The government wants to ease recovery after the pandemic that has shattered the economy and affected the turnover of companies while increasing their cash needs. According to Albert Mwenda, acting director-general, budget fiscal and economic affairs, National Treasury, the measure is part of the country’s covid-19 response plan.

"The guarantee aims to facilitate access to affordable credit to MSMEs by reducing their default risk on loans," Mwenda said. Despite the pandemic, Kenya hopes to maintain a positive growth this year thanks to the rollout of a strong response plan and the resilience of the Agriculture sector. The Parliamentary Budget Office forecasted a growth between 1% and 2% by the end of the year.

Moutiou Adjibi Nourou