Here are non-bank credit options for small borrowers
Alternative financing options exist and many offer better, more flexible terms and conditions for entrepreneurs than the traditional funding instruments. The most common solutions are angel investors, peer-to-peer consumer lenders, crowdfunding, invoice trading, venture capital. FOTOSEARCH
Some commercial banks in Kenya have gone into a lending sabbatical, opting for less risky ventures. Government securities is one of those lucrative instruments that have become a safe haven for these banks.
The Central Bank of Kenya said recently that there was a slowdown in credit growth, especially in trade, manufacturing and real estate, and private households — which account for 60 per cent of total credit to the private sector. CBK said that the contribution of these sectors to credit growth dropped from 13.6 per cent in July 2015 to 4.6 per cent in February 2017.
