Abstract:
Micro and Small (MSEs) play an important economic role in many countries. In Kenya, for example the MSE sector
contributes over 50 per cent of new jobs created but despite their significance. The purpose of this study was to determine the
challenges facing Micro and Small Enterprises in accessing credit facilities in Kangemi Harambee Market in Nairobi City County,
Kenya. The study used descriptive research design. The study targeted a sample of 241 from a target population of 656 MSEs located
in Kangemi Harambee market. Stratified random sampling was utilized in selecting the respondents for the study. Primary data was
collected from the study respondents using questionnaires which wereself-administered and others researcher administered. Data was
analyzed descriptively and presented through figures, tables, percentages, bar charts, arithmetic means, standard deviations, pie charts
and tabulation to show differences in frequencies. Statistical Package for Social Sciences (SPSS) version 21.0 was used to aid in
coding, entry and analysis of quantitative data obtained from the closed ended questions. The study revealed that the key challenges
hindering micro and small enterprises from accessing credit facilities to be high cost of repayment, strict collateral requirements,
unwillingness of people to act as guarantors, high credit facilities’ processing fees and short repayment period. Therefore it is
recommended that financial institutions set more flexible, affordable and attractive requirements in financing micro and small
enterprises.
