From left: Dr. Chris Kiptoo ,Principal Secretary – National Treasury, Mrs. Nasim Devji – DTB Group CEO and Mr. Murali Natarajan – Managing Director & CEO DTB Kenya during the DTB 5th Economic and Sustainability Forum in Nairobi
Diamond Trust Bank (DTB) has projected a significant increase in lending to individuals and small businesses, fueled by Kenya’s improving economic stability and steady growth. The lender anticipates that banking sector credit could double in the next decade from the current $32 billion if the ongoing economic momentum is sustained.
Speaking at the DTB Economic and Sustainability Forum in Nairobi, DTB Kenya Chief Executive Officer Murali Natarajan expressed optimism about the resilience of the economy and the opportunities it presents for financial growth.
“When I look at the resilience of the economy and the track record of having dealt with so many challenges, that gives me immense confidence,” said Mr. Natarajan. “When I look at the MSME segment, which is partly informal and partly formal, I see a big opportunity. As banks start focusing on retail and SMEs, we should be able to double our balance sheet in about three to four years.”
DTB’s strategy involves increasing focus on digital offerings, forming strategic partnerships, and expanding its branch network to enhance accessibility for more customers. The bank also intends to emphasize lending to key sectors such as agriculture, retail, and MSMEs, positioning itself as a major driver of financial inclusion.
Mr. Natarajan credited the improving economic landscape to recent government interventions, including efforts to lower interest rates, favorable weather conditions boosting agricultural output, and a reduction in fuel prices. He commended the Central Bank of Kenya and the government for their role in stabilizing the economy and ensuring continued inflow of remittances from Kenyans abroad.
Dr. Chris Kiptoo, the Principal Secretary for the National Treasury, echoed similar sentiments, stating that Kenya’s diversified economy has proven its resilience against past economic shocks.
“When I started, it was very hard, and I had many sleepless nights. Now the worst is over, and the future is brighter,” said Dr. Kiptoo.
He outlined key priority areas in the upcoming national budget, including agriculture, exports of tea, edible oil, cotton, leather, dairy, natural resources, building materials, and the blue economy. He also emphasized the government’s commitment to boosting private-sector lending through the Credit Guarantee Scheme, which will soon be transitioned into a government-owned entity.
The Treasury is also making headway in addressing pending government payments. Dr. Kiptoo revealed that a verification committee had approved KSh236 billion in payments out of the KSh600 billion backlog inherited by the Kenya Kwanza administration. Most of these funds will be directed toward small businesses and road contractors.
To maintain economic stability, Kenya will remain in the International Monetary Fund (IMF) program. The government is also implementing major reforms such as the Single Treasury Account, e-procurement policies, zero-based budgeting, and Public-Private Partnerships (PPPs) to enhance transparency and optimize resource allocation.
Financial institutions like DTB are positioning themselves at the forefront of economic revitalization, ensuring that individuals and businesses have the support they need to thrive in an increasingly promising economic environment.