Support small business for economic growth, banks urged

Banks should give more loans to small businesses to enhance economic growth, Wajir first lady Kheira Omar has said.

Omar on Saturday said small and medium enterprises play a key role in the economic growth and should be given more focus for development.

Speaking at her office after hosting National Bank chiefs, Omar said micro-small enterprises should be supported.

Among those who paid her a courtesy call are National Bank regional manager for Northern Kenya and Central regions David Ndome, 's Adan Mohamed, Head of Islamic Banking Adan Mohamed and the bank'S Wajir branch manager Abdikani Mohamed.

Omar thanked the managers, saying National Bank has been instrumental in uplifting SMEs by continuously advancing loans that are sharia-compliant.

“Small businesses are vital to the success of any economy since they meet the local needs and are more flexible. When you grow them, you have automatically grown the economy. They are a source of employment to hundreds of our people,” Omar said.

She said Wajir residents were hardworking people who can do a lot with small financial support.

“They can go far as doing business is concerned. I want to appeal to our banks to economically empower them.” 

Omar also welcomed Central Bank of Kenya's move to push for regulations to allow banks to give sharia-compliant products to Muslims who don't take loans.

CBK Governor Patrick Njoroge on Thursday said the regulations have been sent to Parliament for approval. He spoke during a tur of Wajir's Soko Mjinga market to popularise the new Sh1,000 notes.

Njoroge acknowledged the important role played by the SMEs in the economic growth and said that his office will work with the banks to create a conducive environment for ding business.

Edited by peter obuya