- According to Wylde International 2022, at least 60 per cent of SMEs in Kenya were denied funding in three years
- The funding programme is a partnership between the Ministry of Trade, and the National Treasury and sponsored by Kenya Development Corporation(KDC) which will bridge the financial gap that most businesses face.
Image: MINISTRY OF TRADE AND INVESTMENT/X
Ministry of Investment, Trade and Industry has launched a funding programme worth Sh7 billion to support Small Medium Enterprises innovation.
The funding programme dubbed Supporting Access to Finance and Enterprise Recovery( SAFER) is a partnership between the Ministry of Trade, the National Treasury and sponsored through Kenya Development Corporation(KDC) which will bridge the financial gap that most businesses face.
According to Wylde International 2022, at least 60 per cent of SMEs in Kenya were denied funding in three years.
The programme aims to provide accessibility of funds ranging from Sh7,000 to Sh250,000 with flexible repayment terms.
Ministry of SMEs and Cooperatives CS Simon Chelugui, Ministry of Investment, Trade and Industry CS Rebecca Miano and KDC Director General Norah Ratemo presided over the launch on Monday.
Chelugui noted the major challenge that affects these co-operations is financial literacy and he aims to intervene through training startups.
"Financial literacy is a problem in many of our SMEs where many owners lack business knowledge. We are going to set up centres and train the beneficiaries of the fund," Chelegui said.
Miano noted that this project will benefit several enterprises through funding and financial training.
"We are stepping up to empower them through this project and working to ensure that the small businesses can effectively manage their cash flows and pursue growth with confidence," Miano said.
"The project seeks to expand access to finances, capacity building through training and support to financial institutions and technology innovation where we will explore partnerships to integrate technology with existing physical bank branches."
Ratemo said that financial support for businesses is key, especially in the tough economic times.
"In these unprecedented times, access to finance is more crucial than ever for businesses. That's why we're thrilled to launch SAFER, dedicated to providing vital financial support and resources to enterprises of all sizes," Ratemo said.
"Through strategic partnerships, the project aims at impacting MSMEs as they work towards achieving economic growth. We aim to bridge the liquidity gap that the institutions face."
Miano added that the enterprises are amongst the highest contributors to the economy, however, they have suffered from the lack of funding from private financial institutions.
"These enterprises are the heartbeat of our economy contributing significantly. However, they encounter significant challenges when seeking funding from private financial institutions," he said.
"Our goal is to revolutionise access to finance for MSMEs providing them with the support needed to rebound post-COVID-19."