The Mountain Journal
The Culture of Banks lending Funds to government , without giving significant priority to Common Citizens is hurting the Economy Says a Micro Finance expert Hezekiah Kariuki .
Kariuki holds that in such arrangements where the banks focus on lending to the Government without small and medium enterprises, significant funding attention helps the financial institutions register huge profits at the expense of millions of Citizens businesses.
Kariuki Director Together as One Micro finance says the interests that some mainstream financial institutions are earning from government lending are ‘Un realistically huge’
The Statements that get published showing Banks profits annually are in Billions while Small traders are starved of business growth adding the trend has registered slow business growth in Micro medium enterprises.
” Many small and medium businesses lack financial support from mainstream banks and end up Collapsing as these financial institutions focus only on huge lendings leaving potential entrepreneurs vulnerable. ” Kariuki Said.
While we cannot hinder the banks from lending their Money, its important for the Gvt to control the lending to safeguard its citizens from cash flow shortages.
He said that big lenders in the market should strike a balance between huge and small lending to help grow the economy at all levels in the Society.
Kariuki who is also the Director Comfort Homes lamented the huge profits in billions made by some banks while millions of common Kenyans are still languishing in poverty.
“I do not oppose banks’ growth, but it should not be achieved by denying other players the opportunity to grow and build the economy.” He said.
He stressed the need for the banks to put more focus on building the nation rather than just private institutions.
Some profit digits made by some institutions sound unrealistic, but only reveals how borrowers are oppressed since the interests charged to loans to the government are paid by tax payers funds.
He also took issue with the strict and high demand for collaterals in banking lending, and procedures bureaucracies that affect common lenders.
“With government support and lasting partnerships, microfinance institutions can seal the borrowing gaps for economic growth. ” He said.
Banks Lending to government denies Small, Medium enterprises Growth Opportunities,Says Micro- Finance Architect Kariuki
The Culture of Banks lending Funds to government , without giving significant priority to Common Citizens is hurting the Economy Says a Micro Finance expert Hezekiah Kariuki .
Kariuki holds that in such arrangements where the banks focus on lending to the government without according small and medium enterprises significant funding attention helps the financial institutions register huge profits at the expense of millions of Citizens businesses.
Kariuki Director Together as One Micro finance says the interests that some mainstream financial institutions are earning from state lending are ‘Un realistically huge’
The Statements that get published showing Banks profits annually are in Billions while Small traders are starved of business growth adding the trend has registered slow business growth in Micro medium enterprises.
” Many small and medium businesses lack financial support from mainstream banks and end up Collapsing as these financial institutions focus only on huge lendings leaving potential entrepreneurs vulnerable. ” Kariuki said.
While we cannot hinder the banks from lending their money, it’s important for the government to control the lending to safeguard its citizens from cash flow shortages.
He said that big lenders in the market should strike a balance between huge and small lending to help grow the economy at all levels in the Society.
Kariuki who is also the Director Comfort Homes lamented the huge profits in billions made by some banks while millions of common Kenyans are still languishing in poverty.
“I do not oppose banks’ growth, but it should not be achieved by denying other players the opportunity to grow and build the economy.” He said.
He stressed the need for the banks to put more focus on building the nation rather than just private institutions.
Some profit digits made by some institutions sound unrealistic, but only reveals how borrowers are oppressed since the interests charged to loans to the government are paid by tax payers funds.
He also took issue with the strict and high demand for collaterals in banking lending, and procedures bureaucracies that affect common lenders.
“With government support and Lasting Partnerships, Microfinance institutions can seal the borrowing gaps for economic growth. ” He Said.
