Figure 37： . Domestic credit to the private sector and value-added in services (share of GDP), 2019

and 12.3 percent of workers. Around 85 percent of MsMEs are in the services sector, with trade accounting for 62 percent of all. In contrast, the finance sector has the highest percentage of formal The biggest sector of the economy, the services sector, is weakly linked to the rest of the economy. Services are crucial for other sectors to develop, both because they provide inputs for complements"). However, in Kenya, the services sector is weakly linked both within and across sectors. For example, the manufacturing sector could benefit more from professional and ICT services. For firms, information costs are high, and there are important costs to find new buyers or Firms seem to be struggling to access credit. As reflected before, increased public domestic misallocation, with commercial banks shifting from lending to the private sector, especially to MSMEs, to investing in government securities (Alper et al., 2019). Although the cap was lifted in 2019, financial sector is relatively small for the size of its biggest sector in the economy—services. Kenya's domestic credit to the private sector seems highly responsive to real interest rates, suggesting a supply-