2. Synopsis
• Problem: Agricultural SMEs unable to access credit
• Cause: Higher level of information asymmetries
compared to corporates, excessive demand for
tangible collateral, low understanding of borrower
needs
• Consequences: Inadequate external financing to
underpin productive activities of agricultural SMEs
• Solution: 'know the business and the client‘. CIS to
enhance credit providers’ ability to determine
repayment willingness in addition to repayment
capacity ----CHARACTER
3. Evidence of the problem
Banking sector statistics
Empirical evidence
8. Kenya’s approach to credit reporting
system
• Solving information asymmetry through credit
bureaus
• Two-pronged approach:
– Supply-driven data pooling
– …lender-bureau collaborative on-boarding
9. Progress
• Association of Kenya Credit
Providers (AKCP) formed
• Mobilising SACCOs, utilities,
consumer credit providers…
• Positive data from
commercial banks and MFBs
in the last 5 months
10. A 2 hour training is provided
to cover:
CIS awareness
How CRB’s will help in
Access to credit
How to improve their credit
ratingsTips on business credit
management
11. Entry-level Micro Very small Full SME
SMEBSCosts&Fees
Basic KYC and MCRB SME bureau credit report inquiry dataBasic KYC and MCRB SME bureau credit report inquiry data
SMEBS Qualitative dataSMEBS Qualitative data
SMEBS Quantitative
data
SMEBS Quantitative
data
SMEBS Site Verification data + MCRB Alternative data*SMEBS Site Verification data + MCRB Alternative data*
DataComposition&
SMEBSReportcontent
Low
High Rich
Basic
Bronze
Silver
Gold
Platinum
SMEBS
00010001000
SME Ltd
SMEBS
00010001000
SME Ltd
SMEBS
00010001000
SME Ltd
SMEBS
00010001000
SME Ltd
SMEBS Credit Score
1,000550
SMEBS Tier Level
650 750
Typical SME Size#