Seven Kenyan small scale businesses have benefited from a Sh33 million grant from Stanbic Bank following a call for applications that attracted 500 entries.
The funding is aimed at helping the firms recover from the economic effects of the Covid-19 pandemic.
Beneficiaries include Organic Dairies limited, Tropical Lush limited, Meditrust Healthcare Services, Organic Fields, Tarakwo Dairies Company Limited and Tovuti Group which won Sh5 million each in grant while Sunsweet Fruit Farm Products won Sh3 million.
The project is in partnership the United States African Development Foundation (USADF) under the Accelerate Programme.
In Kenya, 7.4 million SMEs employ about 14.9 million people and contribute approximately 40 per cent of the Gross Domestic Product (GDP) this is according to the Kenya Association of Manufacturers.
“Accelerate programme has played a major role in giving businesses the much needed impetus towards growth and the ripple effect will be felt in the coming months as businesses continue to recover from the pandemic,” Stanbic Bank chief executive, Charles Mudiwa said.
In 2020, Stanbic Bank and USADF partnered to provide grants to MSME, cooperatives and producer groups in Kenya.
Over the next five years, a combined total of $10 million (Sh1.1 billion) will be disbursed towards this initiative targeting a 100 per cent Kenyan-owned, managed and legally registered MSMEs.
“The support we are providing in this project will catalyse sustainable economic growth opportunities for small and growing enterprises in undeserved regions in the country,” Regional representative for Africa at USADF, Timothy Nzioka said.