Canada has announced a Sh2billion funding to boost Kenyan SMsE by helping them access seed capital as well as expand their existing businesses.
Mr Chrystia Freeland, Canadian Minister for International Trade announced at the sidelines of the World Trade Organisation (WTO) conference that the fund will help in reducing poverty among Kenya’s most marginalised regions by providing training, expertise and mentoring small-business owners, especially women and youth.
“Canada is contributing $19.5 million to the project over seven years, until 2021,” said Mr Freeland on Thursday.
It is anticipated that the project will train 20,000 entrepreneurs in managing successful businesses and increasing the profits of 250 small and medium-sized enterprises.
“By equipping Kenyan entrepreneurs, especially women and youth, with tools to start and grow their businesses, we are supporting their ability to benefit from economic growth and bring about positive change in their homes and communities,” said the Canadian official.
Canada’s international development program in Kenya is closely aligned to the government’s Vision 2030 strategy.
Kenya recognises SMEs as the next growth frontier for the economy comprising of 75 per cent of all businesses in Kenya. The sector also contributes 18.4 per cent (8.07 Billion dollars) of the GDP (42.8 Billion).
The World Bank states that high interest rates by banks have locked out majority of SME from borrowing loans to support their businesses.
SMEs are also to blame because they meet banks with poor quality of financial records and lack of proper presentation of both their personalities and the business plan.
Marie-Claude Bibeau, Minister of International Development and La Francophonie said that Canada is proud of its commitment to Kenya, which lifts the sector up.
The Government of Canada will be channel the funds through Mennonite Economic Development Associates’ Equitable Prosperity, a private sector development project which focuses on reducing poverty in Kenya’s most marginalised regions..
“We believe that our partnership with the Mennonite Economic Development Associates will assist communities in the most marginalised areas of Kenya to overcome poverty and build successful businesses that contribute to further growth and prosperity,” Ms Bibeau said in a statement