Nairobi SMEs Receive Boost Through New Sh3 Billion Credit Guarantee

On April 8, 2025, NCBA Bank announced a Sh3 billion credit guarantee facility for small and medium-sized enterprises (SMEs) in Nairobi and across Kenya. The program was launched in collaboration with the African Guarantee Fund (AGF), which provides a risk-sharing mechanism to encourage banks to lend more confidently to SMEs. This initiative is expected to significantly ease the financing challenges faced by SMEs, who often struggle to access affordable loans due to high collateral requirements and perceived lending risks.
The credit guarantee program will run for 10 years, offering SMEs tailored financial solutions, strategic partnerships, and business education programs. Through AGF’s support, NCBA has already disbursed Sh16.4 billion in loans, with 696 SMEs benefiting from over 3,500 transactions. The new Sh3 billion facility builds on this track record, expanding the reach of SME financing while strengthening Nairobi’s role as a hub for entrepreneurship and innovation.
Beyond financing, the program is expected to generate 7,200 jobs, with a strong focus on inclusivity: 2,200 jobs for women and 4,100 jobs for youth. Analysts argue that this initiative is transformative for Nairobi’s economy, embedding financial resilience into SMEs while complementing government-led efforts such as the Credit Guarantee Scheme (CGS) under the National Treasury.
Looking ahead, NCBA and AGF plan to integrate digital lending platforms, AI-powered credit scoring, and blockchain-based certification into the program. County officials believe that by embedding advanced tools into SME financing, Nairobi can accelerate job creation, attract foreign investment, and reinforce its role as East Africa’s commercial hub.