Saturday, September 7, 2024

USAID to give Sh. 850 million loans to MSMEs in Northern Kenya

By Natasha Gamalie.

USAID to give Sh. 850 million loans to MSMEs in Northern Kenya

The USAID Kuza program is transforming Northern Kenya. Over the last two years, the program’s Impact for Northern Kenya Fund has lent more than Sh. 850 million ($6.6 million) to over 7,500 micro, small, and medium enterprises in five counties.

The counties benefiting from this financing are Lamu, Tana River, Garissa, Wajir, and Mandera. This support has created over 13,000 jobs in areas like horticulture, agro-processing, fisheries, aquaculture, livestock, and dairy.

At least 71.99% of the Fund’s client enterprises are women-owned businesses, highlighting a significant stride toward gender equality in access to finance.

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Lamu County received the largest share of the overall loans at Sh. 331 million ($2.57 million), followed closely by Tana River County at Sh. 325 million ($2.52 million).

This program is fostering business growth across a variety of sectors, with funding reaching entrepreneurs in horticulture and agro-processing, fisheries and aquaculture, livestock, and dairy.

Kuza by USAID is driving economic growth and empowering women in Northern Kenya. Here are the highlights:

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More than Sh. 850 million in loans have been advanced to more than 7,500 micro, small, and medium enterprises in five counties, Lamu, Tana River, Garissa, Wajir, and Mandera in two years.

This has seen the number of direct jobs in the horticulture, fish, livestock, and dairy diversified businesses jump to over 13,000.

Remarkably, at least 71.99% of the enterprises funded were women-owned hence ensuring gender equity in terms of access to finance.

Lamu County got the lion’s share of Sh. 331 followed by Tana River County with Sh. 325 million.

Over Sh. 260 million ($2.1 million) was invested in Tana River County-based agribusinesses, whose funding went to entrepreneurs in the value chains of horticulture, pastoralism, crop farming, and fishing.

Over 10% of the loans were for financing climate-smart enterprise initiatives led by Garissa County, with Sh. 14 million ($115,630) in climate financing.

USAID Kuza rallies financiers to close the funding gap in Northern Kenya

The results from the conference, themed Unveiling Opportunities: Redefining Northern Kenya as an Investable Destination and organized by USAID Kuza, brought together approximately 380 attendees, 30% of whom were women.

Investors, local entrepreneurs, government officials, and development partners attended the conference to discuss ways through which opportunities would be created and built to achieve sustainable development and economic growth in the region.

Addressing the conference, Kenya’s immediate former CS Trade and Attorney General nominee Rebecca Miano expressed attention to the potential of livestock products in Kenya, saying that the government was keen on entering into partnerships with both domestic and international.

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