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Evaluation of KCB and multi-party guarantees and assessment of prospects of guarantee projects in Kenya

Final Report

Sammanfattning

This evaluation considers loan portfolio co-guarantees in Kenya, supported by Sida and USAID 2012-2021. The guarantees were provided to KCB and three Micro Finance Institutions targeting agriculture and clean energy. The evaluation looks back at effects of the guarantees and it provides lessons for future programming. Relevance and additionality of guarantees to move financial institutions more towards lending in agricultural value chains was varied. The use of the guarantees was sub-optimal, but improving over time. The guarantees were generally efficient. The most important effect is seen in improved and extended availability of tailored lending products and services to MSMEs in agriculture. Sida is recommended to: – Continue loan portfolio guarantees focusing on agricultural value chains in Kenya; – Link up with the initiative of the National Treasury to set up a national guarantee facility for SME lending (post Covid-19 recovery); – Include substantial TA in all guarantee arrangements; – Introduce competitive tendering for guarantee-provision to improve effectiveness of the instrument; – Build in a specific approach for impact analysis of loan provision in the guarantee arrangements.

Nedladdning:

Publicerad på webbplatsen: 2021-09-29

Publikationstyp: Utvärdering – Sida Decentralised Evaluation

Utgiven: 2021

Språk: Engelska

Författare: Frans van Gerwen, Grace Muchunu, Knud-Erik Rosenkrantz, Mercy Mburu