from MARIA MACHARIA in Nairobi, Kenya
Kenya Bureau
NAIROBI, (CAJ News) – KENYA has launched a project to increase access to financial services, enhance capabilities and support the recovery of micro, small and medium enterprises (MSMEs) after COVID-19.
The Supporting Access to Finance and Enterprise Recovery (SAFER) project is a product of the Kenya Development Corporation (KDC), the Ministry of Investment, Trade and Industry (MITI) as well as the National Treasury.
Rebecca Miano, Cabinet Secretary, Ministry of Investments, Trade and Industry, said the project would break down financial barriers for MSMEs through policy reforms, innovative financing and capacity building.
“We are confident that through this initiative, we will ignite a spark of economic revitalization across Kenya,” she said.
The funds will be channelled from the National Treasury to an apex financial institution, which will on-lend to several Participating Financial Institutions (PFIs).
Simon Chelugui, Cabinet Secretary Co-Operatives & Micro, Small, And Medium Enterprises, said interventions will be tailored to address the specific needs of MSMEs across various sectors and regions.
This may involve enhancing financial literacy, facilitating credit access, or fostering partnerships with financial institutions.
“Our goal is to equip MSMEs with the tools and resources they need to succeed,” Chelugui said.
Through SAFER, individual microenterprises will access loans ranging from KSh7 000 (US$50) to KSh150 000, while small enterprises can avail themselves of loans ranging from KSh150 000 to KSh 250 000.
Microloans will have a tenor of up to 18 months, while small loans will extend up to three years, empowering MSMEs to manage their cash flows effectively and pursue growth opportunities.
SAFER has already garnered support from key stakeholders, including the National Treasury, World Bank and Participating Financial Institutions (PFIs).
– CAJ News