Formal and informal institutions' lending policies and access to credit by small-scale enterprises in Kenya: An empirical assessment

Rosemary Atieno

Working Papers from African Economic Research Consortium

Abstract: This study assessed the role of institutional lending policies among formal and informal credit institutions in determining the access of small-scale enterprises to credit in Kenya. The results of the study show that the limited use of credit reflects lack of supply, resulting from the rationing behaviour of both formal and informal lending institutions. The study concludes that given the established network of formal credit institutions, improving lending terms and conditions in favour of small-scale enterprises would provide an important avenue for facilitating their access to credit.

Date: 2001-11-28
Note: African Economic Research Consortium
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