Over 1,500 Micro, Small, and Medium-Sized Enterprises (MSMEs) in Nakuru County are set to benefit from enhanced access to capital, business skills training and mentorship programme aimed at unlocking their untapped potential.
The venture is being implemented by the International Institute of Rural Reconstruction (IIRR) in partnership with the Nakuru County Government on behalf of EASETRADE Micro, Small, and Medium-Sized Enterprise (MSME) Digital Infrastructure Lending Project.
The initiative seeks to equip and empower MSMEs in Kenya to capture opportunities within Africa and the global markets, while advocating for digitised trade and networking mechanisms as well as the inclusion of youth and women in the entrepreneurial space.
Sports, Youth, Gender and Social Services County Executive Committee Member (CECM) Ms Elga Riaga said the initiative was designed to tackle youth unemployment through skills and enterprise development, by focusing on the socio-economic empowerment of young people.
She explained that the undertaking was expected to facilitate increased access to trade finance and capital for MSMEs through Artificial Intelligence (AI) enabled platforms that facilitates onboarding and access to data from multiple sources to build-up data repositories that will enable reliable borrower behavior-based credit scoring as an alternative to physical collateral.
According to Ms Riaga, the strategic objective of the partnership was to connect the MSMEs to money, markets and mentorship adding that they will be striving to connect MSMEs to key stakeholders to scale up new entrepreneurial heights.
Speaking during a meeting with a delegation from Institute of Rural Reconstruction (IIRR), the CECM said the participants will be informed of possible trade opportunities in different sectors including agriculture, ICT, manufacturing and financial services among other sectors.
EASETRADE MSME Digital Infrastructure Lending Project, a three-year inclusive finance and capacity development project currently being implemented in Kenya is aimed at empowering Micro and Small Enterprises (MSMEs) with a particular focus on youth and women.
The project is financed by the Trade and Development Fund (TDF), the Mastercard Foundation and the Trade Catalyst Africa (TCA). Two additional countries from Africa set to benefit from the initiative will be selected by the end of the first year of the project.
Ms Riaga said MSME owners and managers will be trained to package their businesses better in order to be more competitive, profitable and sustainable in their respective ventures adding that the project aligns with Governor Susan Kihika’s agenda of promoting economic growth particularly among the youth and women.
IIRR is an 80-year-old rural development organisation headquartered in Silang, Cavite, Philippines, although it is a U.S.-based organisation with a New York office and branches across Asia and Africa. It promotes people-centered development through participatory capacity building for vulnerable populations and their communities.
The initiative aims to train the targeted youth and women on business resilience, digital sales and marketing, financial management, customer care, access to markets and new value chains as well as legal and compliance requirements.
Ms Riaga said the programme was an important step towards inclusive trade, economic empowerment, and sustainable job creation for women and youth in the MSME sector within Nakuru County.
“With this collaboration, the MSME sector will be better positioned as a pathway for economic growth, food security, and poverty alleviation in Nakuru,” stated the CECM.
She said the initiative was deliberately offering practical skills and entrepreneurship training mentorship through partnerships with various industry titans as well as extending start-up capital.
The CECM indicated that the initiative was aligned to the recently launched Enterprise Funds which aim to economically empower small scale entrepreneurs.
She noted that in the wake of unprecedented challenges brought about by the post Covid-19 pandemic period, Kenya’s micro, small, and medium enterprises (MSMEs) had found themselves at the forefront of economic resilience and recovery.
As the lifeblood of the nation’s economy, Ms Riaga added that MSMEs play a pivotal role in driving innovation, creating employment opportunities, and fostering inclusive growth.
As the backbone of the Kenyan economy, the CECM said MSMEs contribute 34 per cent to GDP, and make up 75 percent of formal establishments in Kenya, creating about 30 percent of jobs annually.
“This initiative emerges as a strategic lifeline, propelling enterprises forward and unlocking the county’s untapped potential,” explained the CECM.
She added that through targeted interventions such as capacity building, technical assistance, and customised financial products, the initiative also aims to equip entrepreneurs with the tools and knowledge necessary to navigate the complexities of the modern business environment successfully.
According to Kenya National Bureau of Statistics there are over 7.4 million MSMEs employing approximately 14.9 million individuals, contributing approximately 40 percent of the GDP.
The CECM disclosed that the County Government would continue providing opportunities for MSMEs sector to grow particularly through the provision of a conducive environment for ease of doing business.
International Institute of Rural Reconstruction (IIRR) project manager Ms Peris Wangechi said the project will help build the capacity of the young, financially disadvantaged micro-entrepreneurs by enhancing their business skills and creditworthiness.
Ms Wangechi indicated that the initiative intends to mobilise, deploy and catalyse MSMEs access to trade finance, leveraging the credit scoring capabilities of digital platforms towards replacing the need for collaterals required by lending institutions.
She said the collaboration will foster an enabling environment to stimulate an inclusive and equitable economic growth of the business startups in Nakuru County.
‘’This programme has the potential to catalyse dignified and fulfilling work opportunities for young men and women, we are laying the foundation for a more equitable and sustainable future for all,” she said.
The project manageri pointed out that they will factor in technical perspectives as well as curricular exchange initiatives as a way to develop international understanding between youth entrepreneurs and their peers from different countries to learn about each other’s culture and way of doing business.
The programme, she added seeks to enhance young women’s access to trade financing, digital literacy, technology adoption, and trade finance knowledge, which will inturn lead to business growth, job creation, and economic development.
The Project manager explained that the critical contribution of MSMEs to broader socio-economic objectives, including job creation, makes them a key priority area for achieving Sustainable Development Goals (SDGs).
“For MSMEs to keep creating jobs, increase incomes and contribute to sustainable food systems there is a need for access to markets, financing, and continuous skills development, “the official elaborated.
According to the Kenya National Bureau of Statistics (KNBS) the MSME sector creates employment for over 15 million people and has a value output of Sh3.3 trillion.
By Esther Mwangi
