SMEP uses group solidarity method of lending. The group members are acquainted to one another and are willing to guarantee one another for loans even where the borrower does not have security for the loans. The group guarantee instills peer pressure, making clients able to pay loans when due.  The groups are made of 10 to 60 entrepreneurs who are known as KIWA or (Kikundi cha Wanabiashara). The programme starts lending small amounts and allows the businesses to grow. The clients are allowed to grow in loan amounts as business demands but not more than twice their previous loans amounts.

All the loans are paid during the weekly, biweekly or monthly  group meetings. The groups also maintain individual collateral savings account with SMEP, where all mandatory savings are deposited and managed by SMEP. This is in an effort to mobilize the savings in one account for all members, thus attract higher interests, which the groups can be given at the end of the year. The savings also serve as cash collateral for loans advanced.

The programme has institutionalized the Almasi programme of 10 members (Almasi) for those clients with higher business needs at the start point i.e Kshs 50,000 and above. Graduated clients from the groups needing higher  loans  and willing to secure the loans 100% with tangible assets can get loans individually.