Reopened economy an opportunity for MSMEs to borrow

Peter Macharia Kamau

Peter Macharia Kamau, the Managing Director Jijenge Credit Limited, during a past interview at Nation Centre.

Photo credit: Dennis Onsongo | Nation Media Group

What you need to know:

  • In Kenya, access to business financing for MSMEs in Kenya has been a challenge, given their informal nature.
  • This scenario has since March 2020 been aggravated by the Covid-19 global pandemic, which has hugely affected SMEs’ access to finance.

In Kenya, micro, small and micro enterprises (MSMEs) constitute an estimated 98 per cent of all registered companies. Outside of farming segment, SMEs absorb half of all employment seekers each year, and their contribution to employment is growing by 12 to 14 per cent each year, according to the public investment promotion agency (KenInvest). They create nearly one in three jobs, but only 3 per cent of GDP as they are predominantly informal.

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