Fintech Urged to Bridge MSME Credit Gaps: Government Calls for Value-Chain Lending

Across Kenya, small and medium enterprises (SMEs) continue to serve as the heartbeat of the economy, employing millions and powering most of the country’s supply chains from agricultural produce to retail and logistics. Yet, despite their central role, access to affordable and timely financing remains one of their biggest challenges. In a recent address, Kenya’s Principal Secretary for MSME Development called on fintech companies to step up and close this persistent credit gap, urging them to explore “value-chain lending” as the next frontier of innovation in financial inclusion.

Unlike traditional lending, value-chain financing looks beyond the individual borrower and focuses on the broader ecosystem that sustains them. It considers how farmers, suppliers, manufacturers, distributors, and retailers are interlinked and how financing each node strategically can strengthen the entire chain. For Kenya’s fintechs, this presents a golden opportunity to develop smarter lending products that are responsive to the realities of small businesses rather than rigid banking templates.

Microfinance institutions like Open Valley Group (OVG) are already well-positioned to play a central role in this transformation. For years, OVG has specialized in empowering small entrepreneurs through accessible, education-driven microloans, providing not just capital but also the tools to build sustainable livelihoods. The government’s renewed emphasis on value-chain financing aligns seamlessly with OVG’s approach, offering an avenue to expand support to businesses that sit at crucial points in Kenya’s trade and production networks.

Take, for example, the country’s vast agricultural sector. A maize farmer in Trans-Nzoia, a transporter in Nakuru, and a miller in Eldoret all depend on one another for success. When financing flows smoothly along that chain helping farmers afford quality seed, ensuring transporters have reliable vehicles, and allowing millers to purchase in bulk the entire ecosystem thrives. By applying a value-chain model, fintech lenders like OVG can reduce risk and increase impact, because each participant’s success reinforces the other’s ability to repay and grow.

According to the Central Bank of Kenya’s 2024 Financial Sector Stability Report, more than 75% of MSMEs cite “working capital shortages” as their number-one obstacle. Value-chain financing directly addresses this issue, linking funds to productivity rather than consumption. As Kenya moves toward implementing its National Financial Inclusion Strategy 2025–2028, fintech innovators who embrace this model stand to not only boost returns but also strengthen the nation’s economic resilience.

For OVG, this is not about reinventing what already works it is about scaling responsibly, building on a foundation of trust, education, and measurable social impact. With its existing partnerships, digital platforms, and field networks, OVG can continue to bridge the financing gap for Kenya’s entrepreneurs in a way that uplifts entire industries rather than just individual borrowers.

The message from the government is clear: the time has come for fintech to power inclusive value chains that leave no entrepreneur behind. OVG’s proven model and community-focused vision make it an ideal player in this next chapter of Kenya’s financial inclusion story.