Low access to funds hurts small traders

Access to credit still remains a challenge to emerging entrepreneurs in the country.

This has led to a stager in the growth of the sector that largely comprises of Micro and Small Entreprise.

According to Deputy Prime minister Uhuru Kenyatta, both the government and private sector players need to work on improving the access levels.

“More needs to be done in terms of giving access to credits to the micro and small entreprises. This is also the reason why most young entrepreneurs do not succeed,” said Mr Kenyatta.

Micro and Small Entreprises in the country have been underscored for the value of job creation.

The industry today absorbs plenty of youths who graduate from higher and tertiary levels of education every year.

However, lack of sufficient start up capital have led to the closure of a number of the ventures.

Access to facilities by credit organisations however are based on stringent requirements that these group does not meet in most cases.

Speaking after launching the Global Entreprenuership Week, Mr Kenyatta who is also the minister for trade said that it was the duty of the government to provide enabling environment for businesses and was committed to that.

“As a government it is our duty to ensure that the environment for these business is right and enabling,” he added.

The Global Entrepreneurship Week is a concept that aims at supporting young entrepreneurs in Kenya. Celebrated worldwide, activities have been lined up throughout out the week.

“We aim at engaging in business ideas and seeing on ways to make them happen as we interact with the youth,” explained Ms Peres Ochieng, chief executive Sacoma, the organisation coordinating the event.

Earlier on, speaking at another function, Mr Kenyatta took issues with institutions charged with disbursing of the Women Entreprise Fund.

The minister accused the organisations of charging higher interests on the loans, beating its objectives.

“These loans are guaranteed by the government and the banks should not ask for collateral. And the interest charged should be low as it should only be enough to cover the institutions’ administrative costs,” said Mr Kenyatta.

The Sh1 billion fund was released by the government last year to promote women entreprises in all the 210 constituencies.

Thirteen financial institutions had been appointed as intermediaries for the fund at its launch last year.