Official Website of Credit Guarantee Scheme  |  National Treasury
Credit Guarantee Scheme
CGS since
2020
R-CGS since
2022

About Credit Guarantee Scheme (CGS)

Establishment of the Credit Guarantee Scheme (CGS) to enhance access to credit by Micro, Small and Medium Enterprises (MSMEs) is a longstanding policy objective of the Government. Kenya Vision 2030, in the Third Medium Term (2018-2022) Plan for the Financial Services Sector, identified credit guarantee as a key programme to enhance performance of MSMEs in the country.

The focus on MSMEs is informed by the critical role the enterprises play in Kenya’s economy through creation of employment opportunities and wealth for a large number of people.

15M
people employed directly by the MSME sector
34%
contribution to Kenya’s Gross Domestic Product (GDP)
91%
of the total new jobs generated annually

The Challenge

MSMEs face a number of challenges despite the significant role they play in the economy. Most of the start-up enterprises do not survive their 4th birthday due to limited access to credit for capital and operational needs, market challenges, and poor business models.

MSMEs which access credit are compounded by unfavourable terms of credit, as they are perceived risky by financial institutions:

  • Lack of sufficient collateral and high collateralization requirements
  • Short repayment periods
  • High interest rates

The Government’s Response

On 8th December 2020, the Government of Kenya (GoK), through the National Treasury, rolled out the CGS to respond to the identified challenges, in order to enhance access by MSMEs to quality and affordable credit.

The implementation of the CGS is through a Credit Guarantee Agreement executed jointly with Participating Financial Intermediaries (PFIs). Through the CGS, the Government commits to pay PFIs a portion of the outstanding principal amount in the event of default on qualifying credit facilities advanced to MSMEs.

Organizational Structure

The CGS organizational structure comprises three tiers, each with a distinct role in the administration of the Scheme.

01
Steering Committee
Oversees the administration of the CGS.
02
The Administrator
Supervises and controls the administration of the CGS.
03
Scheme Manager & Staff
Run the day to day operations of the CGS.
The Cabinet Secretary appointed a secretariat on 9th December 2020, to among other things, monitor, evaluate and report the performance of the CGS. For successful implementation of the secretariat’s functions, development of a monitoring and evaluation manual was deemed necessary. This manual will provide for the monitoring, reporting and evaluation of the activities of the Scheme.
Vision
To be a world class credit guarantor for the growth of MSMEs.
Mission
To enhance MSMEs access to finance through innovations and partnerships in provision of credit guarantees for sustainable growth.
Core Values
  • Integrity
  • Accountability
  • Diligence
  • Resilience
  • Discipline
  • Professionalism
  • Team work
Objectives of CGS

The CGS is one of the strategies in the Vision 2030 and has three key objectives aimed at promoting high levels of savings to finance Kenya’s investment needs. These are—

  1. To improve and stimulate the economy by encouraging additional lending to MSMEs, increasing investment opportunities for MSMEs and strengthening skills and capacities of proprietors of MSMEs.
  2. To create a conducive business environment and promote partnerships between the government and financial intermediaries with respect to credit guarantees for MSMEs and other related activities.
  3. To facilitate the financing of MSMEs, increasing investment opportunities for MSMEs by partially guaranteeing credit advanced to the enterprises.

Where the Scheme Stands Today

Every figure on this page is read from the Credit Guarantee Scheme Management Information System — the same records Participating Financial Institutions report against.

Ksh 0
Committed to the Scheme
Ksh 0 received to date
Ksh 0
Lending Guaranteed
0 facilities to 0 enterprises
0 of 47
Counties Reached
Through 0 participating institutions
CGS Credit Guarantee Scheme
Facilities guaranteed0
Enterprises supported0
Lending approvedKsh 0
Guarantee exposureKsh 0
Live exposureKsh 0
Fund utilised Ksh 0 of 0
R-CGS Rural Credit Guarantee Scheme
Facilities guaranteed0
Agribusiness SMEs supported0
Lending approvedKsh 0
Guarantee exposureKsh 0
Smallholder farmers reached0
Fund utilised Ksh 0 of 0
R-CGS is in its onboarding phase; PFIs are being contracted onto the value chain financing window.
Sources of Funds
Total receivedKsh 0
Guarantee funds are leveraged up to 4 times by participating institutions' own lending.
Live portal figures, last refreshed 8 November 2026. Signed-in users can drill into the full analytics by scheme, institution, sector and county.

Guaranteed Lending Across Counties

Explore guaranteed activity county by county. Switch between the number of facilities and the amount approved, and click any county to re-cut the sector chart to that county — outlined counties are the R-CGS priority counties.

Facilities
R-CGS priority county
Portfolio by Product
CGS 0
R-CGS 0

Enterprises financed: 0
Amount Approved by Sector (Ksh M and %)
National book — click a county on the map to cut it by county.

How a Guarantee Is Issued

Both schemes run on the same platform, but they take different routes to approval. Direct lending is registered after the bank approves it; value chain financing needs a No Objection from the National Treasury before a shilling moves.

Direct Lending
CGS — and the R-CGS direct window
  • 1
    MSME applies to a partner institution Borrower
    A registered micro, small or medium enterprise applies for a loan at any accredited Participating Financial Institution.
  • 2
    Credit assessment PFI
    The institution appraises creditworthiness, business viability, repayment capacity, risk and security under its own credit policy.
  • 3
    Approval & disbursement PFI
    The PFI approves and disburses the facility, then registers it and the guarantee details with the Scheme.
  • 4
    Guarantee activation Scheme
    Cover of 25% of the facility is activated on a 50:50 pari passu basis — no guarantee fee is charged.
  • 5
    Monitoring & monthly returns PFI
    Repayments, arrears ageing, restructuring and closures are reported to the National Treasury each month.
Value Chain Financing
R-CGS — agribusiness SMEs serving smallholder farmers
  • 1
    Agribusiness SME applies Borrower
    A value chain enterprise — input supplier, producer, aggregator, processor, off-taker or exporter — applies to a participating bank, MFB or SACCO.
  • 2
    Appraisal & farmer mapping PFI
    The institution appraises the facility and documents the network of smallholder farmers served, disaggregated by county, gender, youth and PWD status.
  • 3
    Request for No Objection PFI → Treasury
    The PFI submits the facility against the No Objection checklist — registration, tax compliance, permits, ESG standards, security and the guarantee request.
  • 4
    No Objection issued Treasury
    The National Treasury reviews and issues its No Objection. One No Objection authorises all disbursement tranches under the approved facility.
  • 5
    Disbursement & portfolio cover PFI
    The loan is disbursed and covered on a 65:35 pari passu basis, capped at 20% of the value chain sub-portfolio as a stop loss.

Steering Committee

Meet the Steering Committee members providing strategic oversight and governance for the Credit Guarantee Scheme.

Dr. Chris K. Kiptoo, CBS Steering Committee

Dr. Chris K. Kiptoo, CBS

Committee Member

Dr. Chris Kiptoo is the Principal Secretary, National Treasury. He was appointed Principal Secretary by President William Samoei Ruto on 1st December...

Ms. Susan Mang’eni Steering Committee

Ms. Susan Mang’eni

Committee Member

Susan Mang’eni is the Principal Secretary of the newly established State Department for Micro, Small and Medium Enterprises (MSMEs) Development under...

Dr. Kamau Thugge, CBS Steering Committee

Dr. Kamau Thugge, CBS

Committee Member

Dr. Kamau Thugge C.B.S., is the tenth Governor of the Central Bank of Kenya (CBK) and has been in office since June 19, 2023.

Ms. Sharon Irungu-Asiyo, HSC Steering Committee

Ms. Sharon Irungu-Asiyo, HSC

Committee Member

Ms. Sharon Irungu-Asiyo, HSC is the representative of the Attorney General in the Steering Committee of the Credit Guarantee Scheme. She has a Bachelo...

Samuel Tiriongo Steering Committee

Samuel Tiriongo

Committee Member

Dr. Tiriongo is the Director of Research and Policy at the Kenya Bankers Association, responsible for designing and executing the research agenda, and...

Ms. Juliana Migunde Steering Committee

Ms. Juliana Migunde

Committee Member

Juliana Migunde was appointed as an independent member of the Steering Committee for the MSMEs Credit Guarantee Scheme on the 19th February, 2024 for...

Mr. Christopher Aleke Dondo Steering Committee

Mr. Christopher Aleke Dondo

Committee Member

Mr. Christopher Aleke Dondo is a Principal Consultant with Legacy Consulting limited (formerly Cascade Consulting). Prior to joining Legacy Consulting...

Who Can Benefit?

  • Is a micro, small or medium enterprise — under 100 employees and turnover up to Ksh 100 million
  • Registered as a business or company under the relevant laws and verifiable with the Business Registration Service (BRS)
  • Registered by a county government and holds a valid business permit or trade licence
  • Compliant with the relevant tax laws — a valid KRA PIN and Tax Compliance Certificate
  • Viable business with demonstrated cash flow or a credible business plan
  • Facility of up to Ksh 5M, repayable within 3 years
  • Operating in any sector of the economy — and not in a prohibited activity under the Scheme
  • Applies through an accredited Participating Financial Institution, never directly to the Scheme
  • An agribusiness SME directly supporting the production and marketing of smallholder farmers' produce
  • Holds a clear role in the value chain — input supplier, producer, aggregator, processor, marketer, off-taker or exporter
  • Registered and incorporated, tax compliant, and holding a valid business permit
  • Facility between Ksh 5M and Ksh 50M, repayable within 5 years
  • Evidence of the smallholder farmer network served — numbers, counties, GPS locations and disaggregation by gender, youth and PWD status
  • A business plan showing how the facility will benefit those farmers, including off-taker or buyer contracts where applicable
  • Compliance with Environmental, Social and Governance (ESG) standards and climate risk management
  • The facility must receive a No Objection from the National Treasury before disbursement
  • CGS: licensed commercial banks regulated by the Central Bank of Kenya
  • R-CGS: commercial banks, microfinance banks, SACCOs and other approved licensed institutions
  • Sound legal and regulatory standing, governance and risk management capability
  • Demonstrated MSME or agricultural value chain lending capacity and strategy
  • Adequate capital ratios under CBK prudential guidelines, where applicable
  • Executes a Framework Agreement with the National Treasury for each scheme it transacts
  • Ability to meet the Scheme's reporting and system requirements, including monthly portfolio returns
  • Operates within the guarantee ceiling allocated to it under the agreement

How to Apply

  1. Approach a Participating Financial Institution. Applications go through an accredited bank, microfinance bank or SACCO — never to the Scheme directly.
  2. The institution appraises the request. It approves and disburses the facility on its normal lending terms.
  3. The guarantee is registered with the Scheme. No guarantee fee is charged to the borrower.
Accredited institutions register facilities and track guarantees in the PFI Portal.
Access the PFI Portal

Participating Financial Institutions

0 accredited institutions transact guarantees under the schemes. Each holds a Framework Agreement with the National Treasury for the products it is contracted to offer.

Participating institutions are being onboarded. Check back shortly.
R-CGS also admits microfinance banks and SACCOs. Institutions interested in participating should contact the National Treasury.

News & Announcements

View All News

Frequently Asked Questions

Both are partial credit guarantee schemes run by the National Treasury on the same framework. CGS guarantees direct lending to registered MSMEs in any sector, up to Ksh 5M per facility. R-CGS guarantees value chain financing of up to Ksh 50M to agribusiness SMEs that support smallholder farmers, and is co-financed by the Government of Kenya and IFAD through RK-FINFA.

You apply to a Participating Financial Institution, never to the Scheme directly. Ask your bank, microfinance bank or SACCO about CGS or R-CGS backed lending — the institution handles the guarantee registration, and for value chain financing, the No Objection request on your behalf.

Under CGS, risk is shared 50:50 pari passu with the lender, subject to a maximum guarantee exposure of 25% of the principal. Under R-CGS value chain financing, the ratio is 65:35 pari passu, capped at 20% of the value chain sub-portfolio as a stop loss. The guarantee reduces the lender's risk; it does not release the borrower from repaying the loan.

No. Neither scheme charges a guarantee fee. Interest is charged by the lender at market rate, with a discount reflecting the reduced risk, and collateral is set by the institution's own policy and is negotiable with the borrower.

A No Objection is the National Treasury's clearance for an R-CGS value chain facility before the lender disburses. The PFI submits the borrower's registration, tax compliance, permit, appraisal, security, ESG confirmation and the smallholder farmer network it serves. Direct lending under CGS does not require a No Objection — it is registered after approval.

Licensed institutions apply to the National Treasury, complete due diligence on their legal standing, financial soundness, governance, risk management and reporting capability, then execute a Framework Agreement for each scheme they will transact. CGS is open to commercial banks; R-CGS additionally admits microfinance banks and SACCOs.

Have Questions? We're Here to Help.

Our team is available Monday to Friday, 8:00 AM – 5:00 PM EAT. Reach out to learn more about how CGS or R-CGS can support your business or institution.

020225299
cgs@treasury.go.ke
Treasury Building, Harambee Ave, Nairobi