Diamond Trust Bank (DTB) Kenya has reported a sharp increase in lending to small and medium-sized enterprises (SMEs), driven by renewed business confidence, easing inflation, and lower interest rates.
Thank you for reading this post, don't forget to subscribe!DTB Chief Executive Officer Murali Natarajan said the improved macroeconomic environment and government efforts to stabilize the shilling have created favorable credit conditions, helping businesses recover from last year’s turbulence.
“The Government and the Central Bank have done a fantastic job in stabilizing the economy. There has been a transformative change in terms of interest rates coming down,” Natarajan said during the bank’s Economic and Sustainability Forum.
He noted that credit uptake had moved from negative territory to positive growth, signaling an economic rebound.
Focus on SME and retail growth
Natarajan highlighted that DTB’s main focus remains on supporting SMEs and micro-enterprises — the backbone of Kenya’s economy.
“In the last 12 months, we have shifted gears in business and retail banking, and we are expanding our team. Barring any unforeseen situation, we should be able to double our balance sheet in three to four years,” he said.
Trade and Industry Cabinet Secretary Lee Kinyanjui urged banks to play a stronger role in supporting Kenya’s participation in the African Continental Free Trade Area (AfCFTA).
“With AfCFTA, Kenya can leverage its manufacturing base to export goods to a potential market of 1.4 billion people across Africa,” said Kinyanjui.
He further called for increased financing to unlock opportunities in exports, manufacturing, and tourism while addressing political instability that often deters investors.
Unlocking Kenya’s economic potential
Natarajan compared Kenya’s untapped potential to Thailand’s, saying the country could boost its GDP by expanding its tourism industry.
“When I compare Thailand to Kenya, we have similar strengths — culture, natural beauty, and service-oriented people. The question is, what can we do as a country to grow from three million visitors to 30 million? That would make a big difference to our economy,” he said.
DTB’s renewed focus on SMEs aligns with the government’s push to empower local businesses and strengthen Kenya’s competitiveness within the regional and global markets.
