Bankers have called on the government to scale up financial support for Micro, Small and Medium Enterprises (MSMEs), saying the sector remains the backbone of Kenya’s economy.
Speaking during the awarding of a Sh1 million prize to the winner of recently concluded Shinda Milioni promotion campaign by I&M Bank at Kenol Branch in Murang’a, the bank’s Central Region Managing Director Michael Muchoki said empowering small businesses is essential for sustaining national growth.
“MSMEs are the real drivers of our economy and they need impactful and consistent financial support among other incentives,” said Muchoki.
He noted that the government should enhance access to affordable loans and financial facilities so that small businesses can multiply their income and contribute more significantly to the country’s economic development.
The manager further commended the government for its efforts in lowering the Central Bank lending rate, noting that the policy shift has enabled commercial banks to gradually reduce interest rates for loans.
“We encourage the government to continue with such incentives because they help banks lower lending rates, making credit accessible to more small business owners,” he added.
“When SMEs are able to borrow affordably, they grow, and the economy grows with them,” he noted.
I&M Bank’s Head of SMEs Ms Eunice Kinyanjui underlined the challenges that continued to hinder the growth of small enterprises, including limited financing and inadequate business skills.
“Many SMEs crumble not because they lack ideas, but because they lack financing and the know-how to run businesses professionally,” Ms Kinyanjui remarked.
“As a bank, we train our customers, equip them with skills, and ensure they can access banking services easily through online and mobile platforms,” she added.
Ms Kinyanjui explained that I&M Bank has reduced and, in some cases, waived certain banking costs to ease financial pressure on entrepreneurs and encourage more of them to join the formal financial system.
The winner of the Sh1 million grand prize, Francis Kanyi, a small-scale entrepreneur and a farmer from Kangema, expressed deep gratitude for what he described as a life-changing moment.
Kanyi revealed that his family business was destroyed by a fire last year, leaving them struggling to recover.
“I am overjoyed because this money has come at a time when I needed it the most,” Kanyi said adding, “My family business was damaged by fire, and I plan to use this prize to revive it and get back on my feet”.
Kanyi also appealed to the government to create a more enabling environment for small traders.
“I urge the government to reduce taxes and revenue paid by small businesses so that we can thrive,” he said, adding that when small enterprises are relieved of heavy charges, they could grow and employ more people.
The Shinda Milioni campaign is part of I&M Bank’s broader strategy to deepen financial inclusion and support the growth of MSMEs across the country.
By Bernard Munyao
