Nairobi — A total of 2,997 small businesses have received Sh4.64 billion under a state credit guarantee scheme (CGS).

The National Treasury says that the amount was distributed in 46 counties, representing 97.87 percent of county coverage.

Whereas small enterprises received over half of the facility (57 percent), micro enterprises got 29 percent, and medium enterprises got 14 percent.

The CGS was established by the National Treasury on December 8, 2020, to lend MSMEs affordable credit under the Public Finance Management (Amendment) (No. 2) Act, 2020, and the Credit Guarantee Scheme Regulations, 2020.

It is part of the government's agenda to support businesses at the bottom of the pyramid in accessing credit from commercial banks.

So far, seven commercial banks have taken part in the scheme.

However, the state has been engaging with banks to deepen the impact of the scheme through continuous performance monitoring and capacity building, where necessary.

Treasury adds that 22.1 percent of the total guaranteed facilities have been issued to enterprises owned by women, youth, and persons with disabilities.

So far, CGS has supported 18,770 jobs directly, and 1,005 facilities have been fully repaid.

"Participating banks are implementing the Scheme using their own liquidity, existing branch networks and infrastructure allowing them reach out to MSMEs across the country," National Treasuy and Economic Planning Cabinet Secretary Njuguna Ndung'u.

"To this end, KShs. 4.64 billion have been accessed compared to the Scheme's potential of KShs. 12 billion available to MSMEs," Ndung'u added.

"The Government, therefore, encourages qualifying MSMEs to approach participating banks and access these facilities to grow their businesses."