Governments could play a crucial role in helping MSMEs access affordable formal credit, but some past efforts have fallen short of expectations. Defaults on Kenya’s ‘Hustler Fund’, an initiative to provide citizens with access to credit at lower rates than commercial banks, now exceed 50%. Kenya’s National Treasury, under Cabinet Secretary Dr John MBADI, plans to shift the focus from direct lending to MSMEs to expanding credit guarantees and is creating a credit guarantee policy framework. Will this fresh approach be enough to convince risk-averse commercial banks to increase SME lending?