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Formal and informal institutions' lending policies and access to credit by small-scale enterprises in Kenya: An empirical assessment

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  • Rosemary Atieno

Abstract

This study assessed the role of institutional lending policies among formal and informal credit institutions in determining the access of small-scale enterprises to credit in Kenya. The results of the study show that the limited use of credit reflects lack of supply, resulting from the rationing behaviour of both formal and informal lending institutions. The study concludes that given the established network of formal credit institutions, improving lending terms and conditions in favour of small-scale enterprises would provide an important avenue for facilitating their access to credit.

Suggested Citation

  • Rosemary Atieno, 2001. "Formal and informal institutions' lending policies and access to credit by small-scale enterprises in Kenya: An empirical assessment," Working Papers 3f5dfbed-d20c-4204-8a1e-8, African Economic Research Consortium.
    • Handle: RePEc:aer:wpaper:3f5dfbed-d20c-4204-8a1e-8ba6258246c7
    Note: African Economic Research Consortium
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