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Republic of Kenya Coat of Arms
Credit Guarantee Schemes
CGS & R-CGS · National Treasury & Economic Planning
Government of Kenya
Ministry of National Treasury
& Economic Planning
Ksh 5.6B
Committed Across Both Schemes
1,057
Facilities Guaranteed
7
Participating Institutions
44
Counties Reached
MSME Guarantee
CGS — apply via a partner bank
Value Chain Financing
R-CGS — agribusiness SMEs
PFI Portal
Banks, MFBs & SACCOs
Scheme Statistics
Portfolio & county reach
Credit Guarantee Schemes
The National Treasury & Economic Planning
Public Finance Management Act, 2012 and the
Credit Guarantee Scheme Regulations, 2020
CGS since
2020
R-CGS since
2025
About the Schemes

One Guarantee Framework, Two Instruments

The Credit Guarantee Scheme (CGS) is a Government of Kenya initiative under the National Treasury & Economic Planning that enhances access to credit for Micro, Small and Medium Enterprises by providing partial credit guarantees to Participating Financial Institutions (PFIs).

The Rural Credit Guarantee Scheme (R-CGS) extends that same framework into rural Kenya. Co-financed by the Government of Kenya and the International Fund for Agricultural Development (IFAD) through the Rural Kenya Financial Inclusion Facility (RK-FINFA), it de-risks lending to agribusiness SMEs that source from, supply and support smallholder farmers — and opens participation beyond commercial banks to microfinance banks and SACCOs.

Our Mandate
Facilitate access to credit by sharing lending risk with accredited financial institutions under both schemes.
Our Vision
A thriving MSME and rural agribusiness sector driving Kenya's growth, food security and job creation.
Our Mission
Provide sustainable, fee-free partial guarantees that bridge the financing gap for underserved enterprises.
Our Impact
1,054 enterprises financed across 44 counties, with Ksh 1.41B in guaranteed lending.
Our Schemes

CGS and R-CGS at a Glance

Both schemes are administered by the National Treasury on the same guarantee platform, but they finance different borrowers on different terms. The parameters below are the ones the Scheme actually applies.

Product code CGS001
Credit Guarantee Scheme
Direct Lending

To enhance MSME access to finance through innovations and partnerships in the provision of credit guarantees.

Risk Sharing (Guarantor:PFI)
50:50
Effective Cover
25%
Facility Size
Ksh 50K – 5M
Maximum Tenor
3 years
  • Who it serves: Registered MSMEs (BRS).
  • Cover basis: Per individual credit facility.
  • Guarantee fee: None. No guarantee fee.
  • Grace period: up to 5 months, determined by the borrower cash flow
  • Leverage ratio: 4 times the guarantee fund
  • Approval route: The PFI appraises, approves and disburses, then registers the facility with the Scheme.
  • Eligible lenders: Commercial banks
  • ESG: PFIs confirm borrower compliance with Environmental, Social and Governance standards and climate risk management.
Ksh 3B
Fund Allocated
1,056
Facilities
Ksh 695.5M
Guaranteed
Product code R-CGS002
Rural Credit Guarantee Scheme
Direct Lending Value Chain Financing

To improve smallholder farmers productivity and profitability by financing SMEs directly involved in supporting production and marketing of smallholder farmers agricultural produce.

Risk Sharing (Guarantor:PFI)
65:35
Effective Cover
20%
Facility Size
Ksh 5M – 50M
Maximum Tenor
5 years
  • Who it serves: Agribusiness SMEs meeting the product eligibility criteria.
  • Cover basis: Sub-portfolio stop loss — the cap applies across the financing book, not facility by facility.
  • Guarantee fee: None. No guarantee fee.
  • Grace period: up to 12 months, flexible and aligned to the borrower cash flow
  • Leverage ratio: 4 times the guarantee fund
  • Approval route: The PFI must obtain a No Objection from the National Treasury before disbursement.
  • Eligible lenders: Commercial banks, Microfinance banks, SACCOs, Other licensed institutions
  • ESG: PFIs confirm borrower compliance with Environmental, Social and Governance standards and climate risk management.
Priority counties (14)
Bungoma Busia Elgeyo-Marakwet Homa Bay Kakamega Kericho Kisii Kisumu Migori Nandi Nyamira Siaya Trans Nzoia Vihiga
A borrower outside these counties may still qualify where it serves smallholder farmers operating in them.
Ksh 2.6B
Fund Allocated
1
Facilities
Ksh 4M
Guaranteed
R-CGS also supports direct lending on the CGS terms (50:50 risk share, up to Ksh 5M per facility), alongside its value chain financing window.
Impact & Statistics

Where the Schemes Stand 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 5.6B
Committed to the Schemes
Ksh 3.66B received to date
Ksh 1.41B
Lending Guaranteed
1,057 facilities to 1,054 enterprises
Ksh 699.5M
Guarantee Exposure Issued
Ksh 602.1M still live
44 of 47
Counties Reached
Through 7 participating institutions
CGS Credit Guarantee Scheme
Facilities guaranteed1,056
Enterprises supported1,054
Lending approvedKsh 1.39B
Guarantee exposureKsh 695.5M
Live exposureKsh 598.1M
Fund utilised Ksh 2.71B of 3B
R-CGS Rural Credit Guarantee Scheme
Facilities guaranteed1
Agribusiness SMEs supported1
Lending approvedKsh 20M
Guarantee exposureKsh 4M
Smallholder farmers reached1
Fund utilised Ksh 0 of 2.6B
R-CGS is in its onboarding phase; PFIs are being contracted onto the value chain financing window.
Sources of Funds
Government of Kenya / National Treasury
Government · FY 2020/2021
 Ksh 3B
CGS
GoK & IFAD
Development Partner · FY 2025/2026
 Ksh 2.6B
R-CGS
Total receivedKsh 3.66B
Guarantee funds are leveraged up to 4 times by participating institutions' own lending.
Live portal figures, last refreshed 29 August 2026. Signed-in users can drill into the full analytics by scheme, institution, sector and county.
County Reach

Guaranteed Lending Across Kenya's Counties

Explore guaranteed activity county by county. Switch between facilities, value approved, guarantee exposure and R-CGS reach — outlined counties are the R-CGS priority counties.

Facilities
R-CGS priority county
Portfolio by Scheme
CGS 1,056
R-CGS 1
Enterprises financed: 1,054
Non-performing exposure: 16.5%
Guarantee Exposure by Sector (Ksh M)
Top 10 Counties by Facilities
44
Counties Reached
14
R-CGS Priority Counties
1,054
Enterprises Financed
7
Participating Institutions
Process

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.
Check Eligibility Find a Participating Institution
Scope

What the Schemes Will Finance

Each scheme opens to a defined set of economic sectors, and the R-CGS concentrates on agricultural value chains in its priority counties. A short list of activities is excluded from support under either scheme.

CGS Eligible sectors — 12
Agriculture Building & Construction Education Energy & Water Manufacturing Services Tourism, Restaurants & Hotels Trade Transport & Communication ICT Health Other Sectors
Registered MSMEs (BRS).
R-CGS Eligible sectors — 5
Agriculture Manufacturing Trade Transport & Communication Energy & Water
Agribusiness SMEs meeting the product eligibility criteria.
R-CGS

Priority Counties

Borrowers under R-CGS direct lending and value chain financing operate in the 14 counties listed in Annexure B of the participation agreement. A value chain borrower based outside them may still qualify where it demonstrably serves smallholder farmers operating within them.

Bungoma Busia Elgeyo-Marakwet Homa Bay Kakamega Kericho Kisii Kisumu Migori Nandi Nyamira Siaya Trans Nzoia Vihiga
Borrower Classification

An enterprise is classified from its employee count and annual turnover, under the Credit Guarantee Scheme Regulations.

BandEmployeesAnnual turnover
Micro Fewer than 10 Up to Ksh 500,000
Small 10 to 49 Ksh 500,001 – 5 million
Medium 50 to 250 Ksh 5 – 100 million
Excluded Activities

The following are not eligible for financing or guarantee support under CGS, R-CGS or any other Scheme product. A PFI confirms compliance before a guarantee is registered.

Environmental
  • Environmentally, socially and ethically damaging projects
  • Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment or any equipment where the radioactive source is trivial and/or adequately shielded
  • Production or trade in unbonded asbestos fibres. This does not apply to the purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%
  • Drift net fishing in the marine environment using nets in excess of 2.5 km in length
  • Commercial logging operations for use in primary tropical moist forest
  • Production or trade in wood or other forestry products other than from sustainably managed forests
Legal
  • Production or trade in any production activity deemed illegal under host country laws or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides, herbicides, ozone depleting substances, PCBs, wildlife or products regulated under CITES
  • Production or trade in weapons and munitions
  • Illegal activities
  • Drugs
Regulatory
  • Credit not in compliance with prudential regulations
Social
  • Projects or businesses that violate workers rights
  • Gambling
  • Production or trade in tobacco
  • Production or trade in alcoholic beverages (excluding beer and wine)
  • Production or activities involving harmful or exploitative forms of forced labour or harmful child labour
Operations

From No Objection to Claim and Recovery

What happens after a facility is approved: the clearance a value chain loan needs before disbursement, how a guarantee is claimed when a borrower defaults, and what institutions report back to the National Treasury.

R-CGS · Value Chain Financing

Request for No Objection

Before a value chain facility is disbursed, the Participating Financial Institution submits it to the National Treasury for a No Objection. The Scheme Manager receives the request and allocates it to the technical team; the decision carries the Principal Secretary's delegated authority.

  • 24-hour turnaround target from submission to decision, with reminders and time counters in the portal.
  • Incomplete requests are deferred back to the PFI with remarks rather than rejected, and resubmitted under the same reference.
  • One No Objection authorises every disbursement tranche under the approved facility.
  • Smallholder farmer records are held at individual level for verification; only aggregates are ever published.
No Objection Checklist 17 items · 6 require documents
  1. 1 Name of the Agricultural Value Chain MSME to which the credit facility will be extended
  2. 2 Business Registration Number
  3. 3 Certified copy of the certificate of registration or incorporation of the MSME Document
  4. 4 Certified copy of the tax compliance certificate Document
  5. 5 Certified copy of the Business Permit for the MSME Document
  6. 6 Amount of loan approved by the PFI
  7. 7 Tenure of the credit facility
  8. 8 Borrower role in the agricultural value chain
  9. 9 Number of smallholder farmers reached, disaggregated by county, GPS, gender, youth and PWD
  10. 10 Purpose of the credit facility
  11. 11 Business plan/proposal evidencing that the value chain SME supports a network of smallholder farmers Document
  12. 12 Security/collateral description
  13. 13 Certified copy of the appraisal report and approval-in-principle to extend credit to the Value Chain MSME Document
  14. 14 Guarantee request (65:35 capped at 20% of the value chain financing sub-portfolio)
  15. 15 PFI confirmation that the application was assessed per its normal assessment procedures Document
  16. 16 PFI confirmation that the credit facility was not restructured before the request for guarantee cover
  17. 17 MSME compliance with the Environmental and Social Governance standards in Annexure C of the agreement
Claims, Settlement & Recovery
When a guaranteed facility defaults
  1. Default management. The institution identifies delinquent facilities and pursues borrower engagement, demand notices and recovery action under its own policy.
  2. Claim eligibility & validation. The facility, guarantee status, default conditions, documentation and compliance with the guarantee terms are all validated before a claim may be lodged.
  3. Claim submission & assessment. The PFI submits the claim with supporting documents; the Scheme verifies the information and determines the eligible claim amount.
  4. Approval & settlement. Approved claims are settled up to the guaranteed amount, in accordance with the applicable risk-sharing terms.
  5. Recovery. Recovery efforts against the defaulted facility continue after settlement, including collection and enforcement of securities where applicable.
  6. Recovery reporting. Recoveries are recorded, guarantee status updated and outstanding amounts reconciled against the portfolio.
Monitoring, Evaluation & Reporting
What institutions report to the Treasury
  1. Monthly portfolio returns. Disbursements, repayments, outstanding balances, arrears, restructuring and facility closures are reported each period.
  2. Arrears classification. Facilities are classified from days in arrears — Normal (0–30), Watch (31–90), Substandard (91–179), Doubtful (180–359) and Loss (360+).
  3. Guarantee exposure. Liability is computed against the coverage and loss-share ratios in force on the reporting date, and tracked against each institution's allocated ceiling.
  4. Beneficiary reporting. Borrower, sector, county and — for value chain facilities — smallholder farmer outreach, disaggregated by gender, youth and PWD status.
  5. Portfolio review. The Scheme analyses performance, evaluates product effectiveness, identifies emerging risks and refines products, policies and controls.
Governance

How the Schemes Are Governed

Who Does What
  • Steering Committee — sets scheme policy and may impose further conditions before a guarantee is granted
  • The National Treasury — configures products, contracts PFIs, allocates guarantee ceilings, issues No Objections and settles claims
  • Scheme Manager — receives requests and allocates them to the technical team under delegated authority
  • Participating Financial Institutions — appraise, approve, disburse, monitor, recover and report
Transition to the KCGC
  • Cabinet has approved the establishment of the Kenya Credit Guarantee Company (KCGC)
  • The company is envisaged to carry mixed public and private ownership to strengthen its sustainability
  • A roadmap is being developed to integrate R-CGS financing into the CGS investment model
  • Scheme operations continue uninterrupted under the current framework during the transition
Read the announcement
Eligibility

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 between Ksh 50K and 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

Guarantee Parameters

CGS Direct Lending
Max Facility
Ksh 5M
Risk Share
50:50
Cover
25% per facility
Max Tenor
3 years
R-CGS Value Chain Financing
Max Facility
Ksh 50M
Risk Share
65:35
Cover
20% stop loss
Max Tenor
5 years
No guarantee fee is charged under either scheme
Collateral per the PFI's policy, negotiable with the borrower
Guarantee funds leveraged up to 4× by PFI lending
Access the PFI Portal
Partners

Participating Financial Institutions

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

R-CGS also admits microfinance banks and SACCOs. Institutions interested in participating should contact the National Treasury.
Updates

News & Announcements

View All News
R-CGS
5 March 2025
The Rural Credit Guarantee Scheme (R-CGS) Stakeholders' Breakfast Meeting
RK-FINFA, in collaboration with the National Treasury, held a consultative stakeholders' breakfast meeting on 3 March 2025 covering Credit Guarantee Scheme implementation and performance and the onboarding of the R-CGS. Following Cabinet approval to establish the Kenya Credit Guarantee Company, a roadmap is being developed to integrate R-CGS financing into the CGS investment model.
RK-FINFA, The National Treasury
Read on rkfinfa.go.ke
CGS
12 February 2025
Kenya Credit Guarantee Scheme (KCGS) Forum
A stakeholder forum convened by the State Department for MSME Development reviewed implementation of the Credit Guarantee Scheme and the Rural Kenya Financial Inclusion Facility, and set out plans to deepen collaboration with financial institutions. The Scheme had disbursed Ksh 6.34 billion to 4,147 MSMEs as at September 2024.
State Department for MSME Development
Read on msme.go.ke
Onboarding
28 January 2025
Expression of Interest to Onboard Financial Intermediaries for the R-CGS
RK-FINFA invited expressions of interest from financial intermediaries to participate in implementing the Rural Credit Guarantee Scheme under the National Treasury's existing credit guarantee framework — partially guaranteeing lending to rural agricultural value chains and widening participation beyond commercial banks.
RK-FINFA, The National Treasury
Read on rkfinfa.go.ke
Earlier Milestones
26 Nov 2024 GoK/IFAD Implementation Support Mission RK-FINFA 30 Apr 2024 Kenya Credit Guarantee Company to Support MSMEs Kenya News Agency 14 Sep 2023 RK-FINFA Launch — the facility behind the R-CGS RK-FINFA
Items are published by the National Treasury & Economic Planning and its implementing partners. Links open on the publisher's own site.
FAQs

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.
Get in Touch

Who to Contact

Enquiries are handled by the Credit Guarantee Scheme secretariat at the National Treasury & Economic Planning. Please direct your enquiry to the right desk below.

MSME & Borrower Enquiries
Businesses seeking a guaranteed loan
Apply through any Participating Financial Institution — not to the Scheme directly. See the list of institutions.
cgs@treasury.go.ke
+254 20 252 2000
Check the frequently asked questions and eligibility criteria first.
Financial Institution Support
Banks, microfinance banks and SACCOs
Accreditation, Framework Agreements and guarantee ceiling allocation.
cgs@treasury.go.ke
Accredited institutions transact through the PFI Portal.
No Objection requests are submitted and tracked in the portal, on a 24-hour turnaround target.
R-CGS & Rural Finance
Value chain financing and RK-FINFA
rkfinfa@treasury.go.ke
+254 20 322 5000 · +254 20 273 2080
rkfinfa.go.ke — Rural Kenya Financial Inclusion Facility
Priority counties and value chain scope: see the R-CGS scope.
Head Office
The National Treasury & Economic Planning
Treasury Building, Harambee Avenue
P.O. Box 30007–00100, Nairobi, Kenya
Monday to Friday, 8:00 AM – 5:00 PM EAT (excluding public holidays)
+254 20 252 2000 · +254 20 341 0000
info@treasury.go.ke
Complaints & Feedback
Concerns about the Scheme or a participating institution
Raise a lending or service complaint with your institution first — it holds the relationship and the facility records.
Unresolved matters concerning the Scheme: cgs@treasury.go.ke
Quote your loan reference and the name of the institution so the matter can be traced.
Borrower and smallholder farmer records are held confidentially; only aggregate figures are published on this site.

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.

+254 20 252 2000
cgs@treasury.go.ke
Treasury Building, Harambee Ave, Nairobi
Send Us a Message