Kenya plans to unlock micro, small & medium enterprises (MSME) financing
This podcast featured Lemuel Mangla, the Head of Policy and Compliance at CIS Kenya, and MSC’s BFS Specialist Kim Kariuki. They discussed the monumental changes in Kenya’s credit scoring system. The government is moving the financial industry from blacklisting to a graduated model that allows even those with poor scores to access credit. More than 4 million Kenyans can now access formal credit with this move, which will likely accelerate post-pandemic recovery and improve liquidity for women-led MSMEs.
The ability of Financial Institutions (FI) to effectively underwrite microenterprise loans depends on accurate assessment of the loan applicant’s ability and intent to repay. Traditionally, financial institutions use their past knowledge and experience of financing microenterprises to carry out such assessments.
Principles and Models of an Effective Credit Scoring Tool Design
In this video, MSC’s expert Anup Singh, Domain Leader for MSME financing, discusses the utility of credit scoring tool for standardised appraisal of prospective MSMEs for financing. He mentions about the key design considerations that the banks and financial institutions must keep in mind while developing credit scoring tool for MSMEs’ appraisal. He compares the […]