Small and Medium Enterprises (SMEs) have a unique opportunity to access funding and technical assistance after the government opened the second call for applications for the KIEP 250+ project. Successful applicants will have the chance to benefit from performance-based grant funding, which will provide crucial support for business development, managerial and technical skill enhancement, and facilitate access to and utilisation of cutting-edge technology.
Speaking during the event, Principal Secretary State Department for Industry, Dr Juma Mukhwana, said that the government was committed to selecting SMEs from all corners of the country, with at least 20% of them being women-owned businesses.,
“We have officially opened the second application window for eligible SMEs to benefit from KIEP 250+. The project aims to build competitive world-class SMEs, thereby enhancing Kenya’s manufacturing sector and entrepreneurship ecosystem,” he said. “
As a crucial component of the KES. 5 billion (US$50 million) Kenya Industry and Entrepreneurship Project (KIEP), implemented in partnership with the World Bank, KIEP 250+ offers performance-based grant funding for technical assistance to SMEs. This enables them to upgrade and achieve their full potential by identifying sustainable growth paths and receiving support from expert business development service providers.
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To participate in the program, SMEs must be legally registered in Kenya, operate for at least two years, and boast an annual turnover ranging from KES 50 million to KES 1 billion. Additionally, SMEs must be nominated by a lead firm, financial institution, or business association and have a management team willing to commit to a performance improvement plan. Furthermore, SMEs that provide opportunities for persons living with disabilities (PLWD), youth, and women-led enterprises are highly encouraged to apply for KIEP 250+.
Maarten Susan, the KIEP 250+ team leader, affirmed,
“Kenya’s SME sector has previously encountered market failures, including low productivity, marginalised innovation, and gaps in linkages between traditional industries and SMEs. KIEP 250+ addresses these challenges by mobilising working capital, technology, and expertise to support the creation of a sustainable innovation ecosystem.”
Participating SMEs will undergo several stages, starting with identifying areas for improvement and designing performance improvement plans. They will then select business development service providers to address improvement projects covered by KIEP 250+ financial support. The entire process takes approximately 15 to 18 months to complete technical assistance.
The first beneficiaries (Cohort 1), mainly from the agriculture sector, underwent a comprehensive diagnosis process to identify their business gaps, leading to the development of performance improvement plans. The second call seeks to onboard more SMEs from various sectors, strongly emphasising SMEs in the government’s Bottom-up Economic Transformation Agenda (BETA) priority sectors of manufacturing, agriculture, housing and settlement, healthcare, and digital superhighway and creative economy.
Over the four-year project duration, KIEP 250+ aims to oversee five calls for SME applications, with the target of supporting at least 250 SMEs.
Launched in November 2020, KIEP 250+ is a transformative initiative designed to increase productivity, foster innovation, and establish market linkages and capacity among SMEs in the priority sectors.