Change Credit Culture for Favorable Loan Requirement Conditions, Kenyans Told

Kenyans have been challenged to consider having a culture change when it comes to the repayment of loans acquired from financial institutions.

This follows concerns that a majority of Kenyan borrowers have a bad credit culture that has contributed to financial institutions setting high and vigorous standards that must be met before one secures a loan.

According to the Chief Administrative Secretary for the Ministry of Industrialization, Trade, and Enterprise Development David Osiany, attempts by the government to give youths loans without the need for collateral through the Youth Enterprise Development Fund ended in a disaster as many never repaid.

“Need for collateral in funding access is attributed to Kenyans credit culture, a good example being the Youth Enterprise Fund loan that needed no collateral and the end was a disaster,” Osiany told journalists in Eldoret town during the launch of Women in manufacturing – Uasin Gishu County edition.

The CAS noted that as a ministry, alongside other government agencies, they are working on coming up with a policy that will help make it easier for youths, women, and Kenyans in the Small and medium-sized enterprises (SMEs) to access finances.

“What we need to start with is a culture change letting our people know that if you’re given money, in form of a loan, you have a duty to return it for others to benefit,” noted Osiany.