Machakos Governor Alfred Mutua has urged financial institutions to loosen conditions of lending loans to Kenyans to enhance economic growth.
He said many entrepreneurs were unable to access quick financial services from banks and other lenders.
“Getting credit in this country has become an extremely difficult process. And the processes are basically human, not bank regulations. Banks have a culture of taking unnecessarily long to approve documents and that is hurting businesses,” Mutua said on Wednesday.
He was addressing a Small to Medium-size Enterprise (SME) summit at the Machakos Peoples Park where he said many banks had established regulations which are unfriendly for businesses.
“The situation has become worse to the extent that most people have resorted to borrowing cash from individuals. It is has become difficult to go to banks because of the regulations. For us to grow the SMEs, we have to create an enabling environment where the country is moving forward and it is possible,” he said.
“I am giving banks a secret. The bank that will approve access to credit, especially to SMEs within five to six hours to one day, will be the richest bank in Kenya.”
Mutua said he has directed his office through the ministry of Trade to ensure all business permits are processed online beginning February 1 next year.
“We want our people to get business permits within 48 hours upon application. We need to also cut down the processing time to two or three weeks maximum so people can pay quickly,” he said.
The governor said Kenya should craft more innovative ways to ensure governments support businesses and ensure entrepreneurs are insulated from frustrations.
President Uhuru Kenyatta’s adviser on SMEs Ann Mutahi cited lack of opportunities for businesses as the greatest challenge for many SMEs to thrive.
“Where we are right now as SME advisory, unless there is a very strong partnership with the counties, we will not go very far as a country."
Mutahi said the priority should be directed towards unlocking the potential of SMEs to thrive, especially those that are involved in agricultural production.
“We should direct more efforts and energy towards value addition to ensure the food that is needed in other places around the world comes from Kenya,” she said.
Edited by R.Wamochie
