Ruto pledges Sh50bn for SMEs
Deputy President William Ruto launching his Manifesto at Kasarani indoor arena on June 30,2022
The Deputy President William Ruto-led Kenya Kwanza Alliance has committed to spend Sh50 billion annually to provide micro, small and medium enterprises (MSMEs) with access to affordable credit if it takes over power after the August 9 elections.
The alliance yesterday said it would also review all business licences and cap licensing fees at 1.5 per cent of turnover.
The KKA manifesto, which was launched yesterday, further promises to establish an MSME business development centre in every ward as well as an industrial park and business incubation centre in every TVET institution.
The political formation also intends to develop and deploy a robust financial services consumer protection policy and legal framework that will protect Kenyans from predatory lenders.
This, its leaders said, would rein in predatory lending by fintechs, which have become a double-edged sword for MSMEs.
Leveraging on Kenya’s well-developed Sacco system, KKA also promised to develop a tier-three financial system to provide affordable credit to the unserved and underserved, with specific focus on smallholder farmers and MSMEs. The system would also finance affordable housing projects.
Kenyan workforce
According to the KKA manifesto, MSMEs contribute 85 per cent of non-farm jobs, which translates to 15 million out of the 18 million Kenyan workforce.
The sector, according to KKA, absorbs nine out of 10 of the young people joining the workforce, 750,000 on average, while the formal corporate economy barely absorbs 50,000.
To spur growth of the sector that they consider a critical plank of Kenya’s economy, the KKA leaders through their manifesto promised to work with county governments to provide one-street trading area per 50 urban residents, with a view to increasing the average daily income of informal traders by Sh200.
The manifesto also details plans to diversify Kenya’s tourism by promoting niche market products, notably adventure, sport and cultural tourism as well as diversifying source markets to include other African countries.
The alliance also pledged a turnaround strategy for Kenya Airways within six months if it rises to power.
