Numida Launches MSME Lending Operations in Kenya to Expand Access to Business Credit

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📻 Breaking It Down

The launch, held on Tuesday at the Sarova Stanley Hotel in Nairobi, marks the firm’s entry into the Kenyan market with a focus on performance-based financing for already operating businesses that struggle to access traditional bank loans.

Numida executive Lorraine said the company has already disbursed more than Sh22 billion to over 115,000 businesses across the region, highlighting its expansion in East Africa’s digital lending space.

She explained that the firm’s credit model evaluates businesses based on performance data rather than conventional collateral requirements, with an emphasis on speed, capital access and long-term customer relationships.

📌 What You Need to Know

“The problem is not about ability. The problem is a system that does not recognise strong businesses when it sees them,” she said, adding that the company aims to support long-term entrepreneurial growth rather than short-term financing needs.

She further noted, “We don’t fund moments, we fund journeys.”

Speaking at the same event, Digital Financial Services Association of Kenya (DFSAK) Chairman Kevin Mutiso said Numida’s entry comes at a critical time when MSMEs—estimated to employ nearly 15 million Kenyans—continue to face significant challenges accessing credit.

Mutiso observed that while digital lending in Kenya has grown rapidly, formal credit coverage for small businesses remains limited compared to demand.

He added that Central Bank of Kenya data shows there are about 890,000 active MSME loan accounts, leaving millions of small businesses without access to structured financing.

He also pointed to recent policy developments under the Finance Bill 2026, noting proposed amendments that would allow digital lenders to treat bad debts as deductible expenses and ease VAT obligations on asset disposals—changes expected to lower operational costs in the sector.

📰 Source: Capital FM Kenya

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