Treating Credit Access As A Human Right, Because It Is

In today’s world, we often discuss rights in terms of education, healthcare, or access to clean water. While these are all critical to our survival, and indeed our development, one of the most powerful enablers of dignity and opportunity is access to credit. Unfortunately, this is rarely framed as a human right, and yet, it should be.

Credit is not merely a financial instrument. For millions of Kenyans, it is the difference between survival and progress; between operating at the margins of the economy and building a livelihood with dignity. Without access to finance, a farmer cannot expand production, a small trader cannot stock inventory, and a young entrepreneur cannot scale an idea into a thriving business.

Without Credit, There Is No Freedom.

Kenya has made strides in financial inclusion.  According to the 2024 FinAccess survey, 84.8% of the population now has formal financial access, with credit usage rising to 64% of the total population. Yet beneath these gains lies a stubborn gap: Many Kenyans, especially women, and those in the informal workers still depend on unregulated sources like chamas (savings and investment groups), relatives, or even shylocks.

While these informal systems are important, they cannot provide the scale or sustainability required to unlock long-term opportunity. For women, rural communities, and micro-enterprises, the barriers are even higher.

This exclusion is not trivial.  It systematically denies people the agency to grow, invest, and participate fully in the economy.

Last-Mile Empowerment in Action

Faulu, established over 3 decades ago, is bridging this divide by focusing on Micro, Small, and Medium Enterprises (MSMEs).  In 2024 alone, it financed 231 community enterprises across rural Kenya, reaching 830 customers who qualified for small, low-value loans. Many of these were informal groups and micro-entrepreneurs, invisible to mainstream banking.

One striking story is that of a woman who took her first loan of KES 10,000 five years ago. With consistency, resilience, and step-by-step access to larger loans, she recently qualified for a KES 50 million loan. That leap is more than financial; it is transformational. It is evidence of what happens when access to credit is treated as a right, not a privilege.

At Faulu, we have also pioneered lending models tailored to women, youth, and informal workers. Products designed for chamas, agribusiness collectives, and youth start-ups have made it possible for those without traditional collateral to access financing.

These inclusive models matter in a country where women-led enterprises face a $2 billion credit gap, youth unemployment remains stubbornly high, and the informal sector employs over 80% of Kenya’s workforce. Credit, designed inclusively, is the bridge.

The future of credit is not only inclusive but also green. Increasingly small loans are already being extended to households and small enterprises for solar home systems, clean cooking solutions, and water access projects. These not only reduce emissions but also cut household energy costs and improve resilience.

As Kenya positions itself as a green economy leader, community-level green lending will be critical. A small loan for a solar irrigation kit may seem minor in the national balance sheet, but for a farmer, it is the difference between food insecurity and surplus. For a village, it can mean the difference between vulnerability and resilience.

Access to credit must be reframed as a human right. If we can guarantee education, water, or healthcare, why not guarantee financial access—the very thing that allows individuals to pay for these services and improve their lives? As Kenya works toward inclusive growth and climate resilience, the ability of ordinary people to access and use credit must be treated not as a privilege for the few but as a right for all.

Read Also: The Transition to Risk-Based Lending In Kenya: A New Frontier For Credit Access As CBK Approves All 38 Banks

 Mr. Ouma is Faulu Microfinance Bank Managing Director