The effects of liberalization on access to bank credit in Kenya

When structural adjustment policies in Kenya advocated the liberalization of commercial bank interest rates it was anticipated that bank credit, at realistic interest rates, would become more readily available to small businesses. This study suggests that although more businesses have become the customers of banks, the overall volume of credit has not necessarily increased. Taken together with a squeeze in demand for their products and high inflation, small businesses are not always eager for larger bank loans at higher interest rates.