Gatundu South Member of Parliament Moses Kuria has urged Central Bank of Kenya (CBK) Governor Patrick Njoroge to put in place measures to back Small and Medium-Sized Enterprises (SMEs) in different parts of the country for the sake of economic growth.
In a post on his Facebook page, Kuria said freeing up credit for SMEs was a key ingredient for economic growth.
He divulged that he has presented a Bill in parliament, which seeks to lower withholding of Value Added Tax, adding that the same has been passed by Parliament, and is awaiting the green light from the Senate.
“Lower the CRR (Cash Reserve Ratio) your Bwana Governor to 3% with direct proviso that the over Ksh100Bn releases is for lending to MSMEs for working capital and Households for mortgages under the universal housing scheme.
"Similar policy effected in 2004 triggered massive economic growth. CRR was reduced from 8% to 5.5%. Do it like Kibaki did and watch Kenya soar; With direct instructions via prudential guidelines of CBK for banks to onward lend the same to MSME and households," Kuria's post read in part.
Over the years, SMEs have faced endless challenges when it comes to financing, and acquiring of credit.
Here's Kuria's post.