Sidian Bank’s John Okulo urges capital markets to help close the MSME funding gap
- John Okulo discussed the potential of Kenya's capital markets to expand MSME financing.
- He noted that commercial banks currently allocate about 25% of their loan portfolio to MSMEs.
- Okulo proposed a debt bond by FSD Africa to aggregate MSME debt for institutional investors.
The proposal by John Okulo to leverage capital markets for MSME financing presents a promising opportunity for both banks and small businesses in Kenya. However, the success of such initiatives will depend on the structure of the proposed debt instruments and the willingness of institutional investors to engage with the associated risks. A collaborative approach involving various stakeholders will be crucial to ensure sustainable growth in this sector.
