Opinion: Kenya’s Businesses Need Diverse Financing Options

Alex Muthaka of Lofty-Corban Investments Limited argues that Kenyan businesses struggle not from a lack of capital, but from a lack of appropriate financing options. He notes the country’s MSME financing gap currently stands at Sh3.3 trillion, a rise from earlier estimates of Sh2.2 trillion.

Muthaka proposes private debt as a complementary financing model to traditional bank lending, offering structured arrangements that expand funding choices for both businesses and investors. This approach allows investors to diversify portfolios and access income-generating assets while providing businesses with flexible capital for growth and innovation.

A diverse financial ecosystem, Muthaka contends, is crucial for Kenya's entrepreneurial potential. He emphasizes the need to move beyond a single financing model and instead create a system that supports businesses of all sizes, enabling expansion, innovation, and job creation.