NAIROBI, Kenya, Oct 15 – Diamond Trust Bank (DTB) Kenya says lending to small and medium-sized enterprises (SMEs) is on the rise, buoyed by a stronger economy, easing inflation, and lower interest rates.
DTB Chief Executive Officer Murali Natarajan credited the government and the Central Bank of Kenya (CBK) for stabilizing the shilling and improving credit conditions, which he said are already translating into stronger business performance.
“I think the Government and the Central Bank have done a fantastic job from what was in the middle of last year and what we have today. There has been a transformative change in terms of interest rates coming down,” said Natarajan during the bank’s Economic and Sustainability Forum.
He noted that credit uptake had shifted from negative territory to positive growth over the past few months, signaling renewed business confidence.
“DTB is focused on business banking, particularly SMEs and micro-SMEs. In the last 12 months, we have shifted gears in business and retail banking, and we are expanding our team. Barring any unforeseen situation, we should be able to double our balance sheet in three to four years,” he added.
Trade and Industry Cabinet Secretary Lee Kinyanjui urged banks to play a bigger role in driving Kenya’s economic growth by supporting enterprises seeking to expand under the African Continental Free Trade Area (AfCFTA).
“With AfCFTA, Kenya can use its strong manufacturing base to export goods to a potential market of 1.4 billion people across the continent,” said Kinyanjui.
He also called for enhanced financing to unlock Kenya’s potential in exports, manufacturing, and tourism while minimizing political risks that deter investment.
“If you remove the political risk, Kenya can play its rightful role. We have the talent, land, and weather — almost everything we can imagine — except the political risk,” he noted.
Natarajan, comparing Kenya’s potential to Thailand’s, said the country could dramatically boost its economy by expanding tourism.
“When I compare Thailand to Kenya, we have similar strengths — culture, natural beauty, and service-oriented people. The question is, what can we do as a country to grow from three million visitors to 30 million? That would make a big difference to our economy,” he said.
By Erick Malala
