November 6, 2024
Kenyan Banking Sector Pledges Sh150 Billion Boost For SMEs

Kenyan Banking Sector Pledges Sh150 Billion Boost For SMEs

Kenyan Banking Sector Pledges Sh150 Billion Boost For SMEs

The association announced Wednesday during the Banking Industry Inua Biashara Small and Medium Enterprise Exhibition at the Kenyatta International Conference (KICC).

President William Ruto who was in attendance hailed the banking industry’s renewed focus on supporting SMEs as a critical step toward national economic transformation.

President Ruto underscored the importance of collaboration between the government and private sector to unlock the potential of SMEs.

He noted that SMEs already contribute up to 90 percent of jobs and nearly a third of Kenya’s GDP, making them essential to the country’s long-term economic strategy.

“The empowerment of SMEs is at the core of our Bottom-Up Economic Transformation Agenda,” Ruto said.

“Through strategic partnerships, we can help these enterprises overcome the barriers to growth, improve livelihoods, and contribute to national prosperity,” Ruto said.

The Banking Industry Inua Biashara Small and Medium Enterprise Exhibition at the Kenyatta International Convention Centre, Nairobi, October 16, 2024

The exhibition showcased various innovative financial products and solutions developed by Kenyan banks to facilitate SME growth.

According to the Central Bank of Kenya, lending to SMEs reached Sh783 billion in 2023, marking a Sh75 billion increase.

However, the new pledge by the banking industry to inject an additional Sh150 billion annually is expected to significantly boost SME activity across the country.

President Ruto also took the opportunity to launch the MSME Accelerator Programme, which aims to provide tailored support for small businesses through training, assessments, and partnerships with public and private sector organizations.

The program is expected to help SMEs strengthen their financial management skills, develop scalable business models, and gain access to credit and markets.

” I am confident that our banking sector’s dedicated support program will facilitate MSMEs to develop scalable business models, strengthen financial management skills, and gain access to investors, markets, and formal credit,” Ruto said.

President Ruto further commended the banking sector for its exemplary role in Kenya’s economy, highlighting the industry’s Sh190 billion tax contribution in 2023 as a testament to its importance.

President William Ruto during the Banking Industry Inua Biashara Small and Medium Enterprise Exhibition at Kenyatta International Convention Centre, Nairobi, October 16, 2024

He emphasized that the government would provide the necessary policy and institutional support to ensure the banking sector’s continued growth, particularly in its support of SMEs.

” Accordingly, the government will support this bold and innovative move through policy and institutional backing, including measures to guarantee the prompt payment of all pending government bills, which will commence once the ongoing verification process is completed,” the President said.

He also urged the National Treasury and the Ministry of Cooperatives and MSME Development to harmonize their policies to create a sustainable framework for addressing the challenges that SMEs face, especially in accessing credit.

He stressed the importance of inclusive engagement within the financial services sector to ensure that the benefits of economic growth are widely shared.

Kenyan Banking Sector Pledges Sh150 Billion Boost For SMEs