Micro – micro lender Jijenge Credit mulls bigger loans, expansion

By Steve UMIDHA

Digital credit provider Jijenge Credit Ltd is looking at raising the size of its loans and expanding into newer markets on the back of a surge in demand for small business funding from alternative lenders.

Chief executive Peter Macharia told reporters that the Nairobi – based fintech was ready to take on new regions like Thika and Kitengela in an ambitious plan that could see the lender open physical outlets for its target customers.

“This has also been necessitated by the improving business environment currently witnessed as well as the recent move by the Central bank of Kenya that had forced local commercial banks to push lower their lending rates,” said Macharia.

Indeed, several Kenyan banks have reduced their lending rates in 2025, following the Central Bank of Kenya’s (CBK) decision to lower the benchmark rate. The rate cuts are expected to increase borrowing and economic growth.

The rate cuts are intended to make credit more affordable for businesses and individuals, which will in turn increase borrowing, thereby boosting credit demand and improving asset quality in banks and other lending entities.

Banks like the Co- operative Bank of Kenya and Kenya Commercial Bank (KCB) commenced leading the way in lending rate cuts of up to 1% following the CBK directive. The recent decision by the Central Bank of Kenya (CBK) to lower the Central Bank Rate (CBR) to 10.75 per cent and Cash Reserve Ratio (CRR) to 3.25 per cent has triggered notable shifts in the financial sector.

According to Macharia, such rate cuts are expected to lower operational costs, foster growth, and create jobs for local businesses both big and small. While for households, lower rates mean reduced loan repayments, increasing disposable income and stimulating consumer spending.

“It’s quite hard to lend in different markets, in the sense that it requires different data sources and the mentality is also different, but these markets are now key for us,” reiterated Macharia whose firm specialises in logbook loans, mortgage financing, check – off loans and title deed loans.

Today, the bulk of Kenyan SMEs are requesting larger loans to boost their operations according to Macharia, an economist and a banker by profession, whose firm, Jijenge Credit now serves a growing number of medium-sized businesses and is reviewing considerably increasing its loan sizes to meet the growing demand.

The firm’s loan amount ranges from between Sh 50,000 to 10,000,000 and targets anyone who owns a private, commercial or passenger service vehicle.

It is estimated that there are about 7.4 million SMEs in Kenya today, according to the Financial Sector Deepening Kenya (FSD Kenya) report for 2024, with the majority of them operating without licenses and only 21 percent operating with licenses.