Mobile Loans Remain Leading Source Of Funding For Businesses: Survey

By Kepha Muiruri

Mobile loans have remained as the primary source of finance for businesses in 2022.

This is according to findings from the 2022 Kenya SME Performance Index by Viffa Consult.

Savings and Credit Cooperatives (SACCOs) come in second ahead of family & friends and savings.

Other primary sources of financing listed by respondents in the survey include Chamas, re-investing profits, banks, and micro-finance and industry associations.

“Mobile credit, Sacco and family and friends formed the top three primary sources of business finance in 2022, this is similar to FSD FinAccess 2021 where mobile credit and family-friends were also top three,” noted the survey.

“SME FinAccess has come a long way with mobile credit leading the charge in providing SMEs with access to finance.”

The Survey featured a sample of 127 small business spread across the country including Nairobi, Kisumu, Machakos, Kiambu, Eldoret, Mombasa and Nakuru.

SMEs have cited 2022 as a challenging year, characterized by a prolonged electioneering period, inflation and reduced disposable incomes.

The performance of SME sales according the survey has been mixed with an equal number of businesses reporting a dramatic fall in revenues as those who recorded a rise in turnover.