Jijenge Credit, a leading digital lender, is set to expand its operations and increase loan sizes to meet the rising demand for small business financing. The company plans to open new branches in Thika and Kitengela, reinforcing its commitment to supporting SMEs with accessible credit solutions.
Chief Executive Officer Peter Macharia stated that the expansion is driven by an improving business environment and the recent decision by the Central Bank of Kenya (CBK) to lower the benchmark interest rate, which has led commercial banks to reduce their lending rates.
“This decision has created a favorable lending environment, making it the right time to grow our market presence and offer larger loans to businesses in need of capital,” said Macharia.
Banks Lower Rates, Boosting SME Credit Access
Following CBK’s adjustment of the Central Bank Rate (CBR) to 10.75% and the Cash Reserve Ratio (CRR) to 3.25%, major banks such as Co-operative Bank and Kenya Commercial Bank (KCB) have reduced their lending rates by up to 1%. This move is expected to make credit more affordable, stimulate borrowing, and support economic growth.
Jijenge Credit’s Role in SME Financing
Jijenge Credit specializes in various lending products, including logbook loans, mortgage financing, check-off loans, and title deed loans. The firm offers financing ranging from Ksh 50,000 to Ksh 10 million, catering to SMEs and vehicle owners seeking capital for expansion.
According to the 2024 Financial Sector Deepening Kenya (FSD Kenya) report, the country has approximately 7.4 million SMEs, but only 21% operate with official licenses. Many of these businesses struggle with access to credit, making alternative lenders like Jijenge Credit crucial in bridging the financial gap.
With its planned expansion and enhanced loan offerings, Jijenge Credit aims to empower more SMEs, fostering business growth and economic development across Kenya.