The Kenya Development Corporation (KDC) in partnership with Kenya Association of Manufacturers (KAM) today held an engagement session to support the recovery and growth of Small and Medium-Sized Enterprises (SMEs) in the manufacturing sector.
During the engagement, the third of its kind by KDC in the country; KDC announced that it has launched a plan to engage SMEs countrywide to sensitise them on KDC’s products and services with a view to understanding their financial needs. The initiative was previously launched in partnership with the Kenya National Chamber of Commerce & Industry (KNCCI) in Mombasa and Kisumu Counties.
What counts now is how we can collectively drive economic recovery and reshape our businesses to meet the needs of all stakeholders particularly enterprises in the critical sectors of the economy. KDC is therefore keen to explore opportunities to re-imagine the future and establish the role to play to spur economic development of our country in line with the Vision 2030 and big 4 agenda. The manufacturing sector remains a key area to ensure sustainable recovery, said Judith Omachar, Deputy Director, Business Development.
KDC acknowledges that long-term recovery requires that funding be made available to the economic pillars that need it most. KDC is working closely with the County Governments and key market players to obtain information and insights that support the corporation’s financing decisions.
“To create the conditions for an inclusive and sustainable recovery from pandemic and growth, it is essential to expand and adapt our approach to SME financing and ensure that their operations continue without any interruptions. This is part of our efforts to consistently add value by offering financial and non-financial services,” Ms. Judith said in her opening remarks.
Speaking at the forum, KAM Head of Membership and Governance, Mr. Tobias Alando noted that the key focus is on access to finance. We urge the government to expand its support for SMEs by increasing budgetary allocations for initiatives such as the credit guarantee scheme. This will go a long way in driving the resilience of small businesses, creating more jobs and growing our economy.
In his remarks, the Ministry of Industrialization, Trade and Enterprise Development Director, Mr. Steve Odua emphasized the need for public private partnership to accelerate recovery from the adverse impact of the pandemic.
“MSMEs are a crucial component of the Kenya Economy. They constitute approximately 80 percent of Kenyan businesses and together employ close to 14.9 million people. Approximately 7.4 million MSMEs in Kenya collectively contribute about a third of the country’s gross domestic product (GDP). Our goal and drive is to better understand the financial needs of our customers and support them as they pursue the aspirations,” Director Odua said.
The Corporation is keen on assessing the socio-economic impact of her investments and is in the process of developing a socio-economic impact framework. This exercise requires critical economic data that will be used to develop a socio-economic impact assessment model.