Kenya's small and medium enterprises (SMEs) are the backbone of our economy, contributing over 40% of the country's GDP and employing millions of Kenyans.

However, access to affordable financing has remained one of the biggest challenges facing entrepreneurs across the country. At EP Capital, we've witnessed firsthand how the right financial support can transform a struggling business into a thriving enterprise. Take Mary Wanjiku, a vegetable vendor from Kiambu County, who approached us last year with a dream to expand her business. With a modest loan of KSh 150,000, she was able to rent a larger stall, diversify her products, and hire two additional employees.

Today, her monthly revenue has tripled, and she's planning to open a second location. The landscape of business financing in Kenya has evolved significantly over the past few years.

Traditional banks, which once dominated the lending space, are now competing with innovative microfinance institutions, SACCOs, and fintech companies. This competition has led to more flexible loan terms, faster approval processes, and better interest rates for borrowers. One of the most significant changes we've observed is the shift towards collateral-free lending. Many lenders now use alternative credit scoring methods, including mobile money transaction history, business cash flows, and even social media activity to assess creditworthiness. This has opened doors for many entrepreneurs who previously couldn't access formal credit due to lack of traditional collateral. Digital lending platforms have also revolutionized the industry. What used to take weeks or months for loan approval can now be completed in hours or days. Mobile money integration has made loan disbursement and repayment seamless, with borrowers able to receive funds directly to their M-Pesa accounts.