Kenneth Majau Mugambi, Alex A van der Merwe

75106

Historical Incidences of Credit Rationing among Micro and Small Enterprises in Kenya

Historical Incidences of Credit Rationing among Micro and Small Enterprises in Kenya

In the mid-2000s, the Government of Kenya recognised the existence of institutional barriers preventing micro and small enterprises (MSEs) from directly accessing credit from financial institutions. This development informed the change of lending policy from direct lending to group lending in government supported programmes. However, this change was effected without a comprehensive theoretical and empirical examination of the underlying reasons why MSEs failed to access credit. This study fills this gap by investigating the the underlying reasons MSEs were credit rationed in Kenya. The general consensus from this study is that there was a high incidence of credit rationing in Kenya in 1990s and 2000s which stemmed from information asymmetry. The study concludes that the Government’s current policy of promoting group lending is indeed workable if the mode can assist in mitigating information asymmetry in credit markets.

Keywords:

Credit rationing information asymmetry, Micro and small enterprises.,

International Journal of Economics and Financial Issues-Cover

Başlangıç: 2011
Yayıncı: İlhan ÖZTÜRK

Arşiv

Sayıdaki Diğer Makaleler

Prediction of Related Party Transactions Using Artificial Neural Network

Sayed Ali Vaez, Mohammad Banafi

Causal Effects and Dynamic Relationship between Exchange Rate Volatility and Economic Development in Liberia

Abimelech Paye Gbatu, Zhen Wang, Presley K. Wesseh Jr., Isaac Yak Repha Tutdel

The Role of Corruption Control in Moderating the Relationship Between Value Added Tax and Income Inequality

Mohd Zulkhairi MUSTAPHA, Eric H. Y. KOH, Sok-gee CHAN, Zulkufly RAMLY

Effect of Monetary Aspects on the Performance of Islamic Banks in Indonesia

Capital Structure and Firm Performance During Global Financial Crisis

Marzieh KHODAVANDLOO, Zukarnain ZAKARİA, Annuar Md. NASSİR

Middle Income Trap and Infrastructure issues In Indonesia: A Strategic Perspective

Sigit SETİAWAN

Stability and Economic Performance of the Inflation-Targeting Policy Facing the Crisis

Abdelkader AGUİR

Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies

Historical Incidences of Credit Rationing among Micro and Small Enterprises in Kenya

Kenneth Majau Mugambi, Alex A van der Merwe

Financial Inclusion of Business Players in Mediating the Success of Small and Medium Enterprises in Indonesia

Hedwigis Esti Riwayati