Lending to small and medium enterprises (SMEs) is predicted to jump in the weeks ahead fuelled by demand for cash as holiday season kicks in and full schools re-opening expected in January.
Mary Munyiri, ECLOF Kenya chief executive said with the uptake which has been on the rise since the lifting of restriction measures in September, demand for loans will easily double the normal monthly uptake in the month of December all through to the first quarter of 2021.
“Ordinarily this is always a busy period and I expect that trend to carry on this year despite the raging impact of the coronavirus which pushed many Kenyans out of work,” she said.
“It is a similar pattern we have seen since July when loans uptake significantly jumped as more businesses sought loans for operations after hurting from the pandemic.”
ECLOF is a microfinance institution providing financial and related non-financial services to micro, small and medium entrepreneurs in Kenya as they run their income generating activities.
As a result, Peter Macharia, Chief executive of Jijenge Credit a local microlender says that industry players will be racing to fill financial gaps by offering loans quickly to those struggling financially as a result of the pandemic with more Kenyans still out of work and their ability to borrow is also limited.
“You should expect very busy weeks ahead and this will continue to the first quarter of 2021 with Easter Holidays also a period where Kenyans tend to spend and therefore will need to borrow to keep up with the celebrations and travel expenses,” he adds.
Since the month of July, the number of borrowers seeking moratorium has been growing day by day.