Odhiambo noted that the missing link is not willingness but contracting capacity, noting that SMEs lack trusted partnership frameworks that allow them to bring in investors without losing control.
He said maintaining reliable data, which is essential for credit scoring, requires investment in technology and cyber-security that many small firms cannot afford.
"Let them pull together. Let them share a data centre," he advised, suggesting that SME associations can jointly build record-keeping infrastructure instead of each business investing individually.
He also warned that the financing ecosystem remains fragmented, with banks, venture capital firms and development financiers operating in parallel rather than collaboratively.
"The interests are not convergent. We need a common space where all these funds meet the needs of the SMEs," he said
He further noted that regulatory constraints make banks more conservative than impact-driven investors.
He added that banks are increasingly using alternative instruments such as letters of credit, guarantees and performance certificates to unlock financing without demanding land titles or logbooks.
"Money doesn't really have to move. A simple advance payment guarantee can open funding for a contract," he said.
But he cautioned SMEs against over-expansion.
"When SMEs start seeing big openings, they become extra ambitious. If you don't have the capacity and skills, it becomes a risk," he said.
On the future of lending, Odhiambo said credit models must shift from simple decision analytics to predictive analytics, especially in a volatile economic environment.
"What worked in the past might be distorted data. Your analytics must help you make predictions, not just decisions," he said, citing climate shocks, trade disruptions and geopolitical risks as emerging factors.
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