Kenya’s Equity Bank tops MSME lending with KSh24.9B disbursed from Jan–May 2025, supporting job creation and business growth.
Equity Bank Kenya has emerged as the leading lender to Micro, Small and Medium Enterprises (MSMEs) in the first five months of 2025, according to the latest Kenya Bankers Association (KBA) MSME Credit Survey Report. The bank disbursed KSh24.9 billion (approx. USD 194 million) in MSME loans between January and May 2025, out of a sector-wide total of KSh81.4 billion.
This performance reflects the bank’s entrenched strategy of supporting small businesses as engines of economic growth. Equity’s contribution represents over 30% of all MSME lending in the country during the period under review — a figure that underscores its pivotal role in advancing financial inclusion in Kenya.
“This milestone is a testament to the collective effort of our teams, partners, and customers,” said the bank via its official LinkedIn update. “Together, we’ve fueled the ambitions of thousands of MSMEs across the country, unlocking opportunities, creating jobs and powering Kenya’s economic growth.”
MSMEs: Backbone of Kenya’s Economic Recovery
Micro and small enterprises are a vital part of Kenya’s economic fabric, accounting for more than 90% of private sector enterprises and employing about 15 million Kenyans, according to the Kenya National Bureau of Statistics (KNBS).
The KBA report highlights that increased bank funding to MSMEs between January and May 2025 is a signal of renewed confidence in the sector, following pandemic-era disruptions and persistent liquidity challenges.
“When banks fund MSMEs, they fund stability. It’s the most sustainable form of inclusive growth,” said a former KBA official during the report’s launch.
Equity Bank’s Strategic Shift Amid Leadership Changes
The achievement also comes during a transition phase at Equity Bank (Kenya) Limited, a subsidiary of Equity Group Holdings Plc.
On July 4, 2025, the bank’s board appointed Mr. Moses Okoth Nyabanda — Equity Group’s Chief Finance and Strategy Execution Officer — as Acting Managing Director, subject to Central Bank of Kenya (CBK) approval. This followed the early retirement of Mr. Gerald Warui, who had served the bank for decades in roles spanning operations, customer experience, HR, and eventually as Managing Director of the Kenyan unit.
The board expressed its gratitude, stating:
“The Board wishes to thank Mr Warui for his long and dedicated service to the Group.”
Nyabanda’s appointment is expected to bring continuity and further alignment between financial strategy and on-the-ground banking execution, especially in high-impact segments such as MSMEs and digital banking.
Why Equity Dominates the MSME Space
Equity Bank’s success in the MSME space can be attributed to a combination of:
- Tailored loan products for micro and small businesses, including unsecured working capital and asset financing
- Digital banking tools that help MSMEs access credit remotely
- Partnerships with development finance institutions (DFIs) and donor-funded guarantee schemes to mitigate credit risk
- Capacity-building programs that train MSMEs in bookkeeping, financial literacy, and digital payments
The bank’s mobile and agency banking channels have also expanded access to credit beyond urban centers, especially in counties with high MSME density such as Nakuru, Kisii, and Mombasa.
According to Equity Group’s 2024 Annual Report, more than 55% of the bank’s loan book was dedicated to SMEs, agriculture, and microenterprises — a testament to its “shared prosperity” approach to banking.
Sector-Wide Trends and Outlook
Other banks that featured prominently in the KBA’s MSME disbursement report include KCB, Co-operative Bank, and ABSA Kenya, though none came close to Equity’s volumes.
With the economy projected to grow at 5.6% in 2025, and with increasing digitization of trade and supply chains, the appetite for MSME credit is expected to remain high, especially in agriculture, transport, retail, and fintech-linked enterprises.
KBA emphasized that continued reforms to enhance credit information sharing, reduce loan processing timelines, and increase collateral-free lending are essential to deepen the sector further.
Conclusion
As Equity Bank Kenya transitions leadership while maintaining a commanding position in MSME financing, it is clear the institution is deeply rooted in Kenya’s economic transformation agenda.
The KSh24.9 billion disbursed between January and May 2025 reflects not just numbers, but real impact — in the form of businesses launched, jobs created, and communities empowered.
“These are not just loans,” the bank noted. “They are empowerment tools that uplift families, create jobs, and fuel entire communities.”
