President William Ruto has promised prompt payment of all pending government bills to micro small and medium businesses to stir the overall economic growth.
He said that this will be done once the ongoing verification process is completed.
Speaking during the opening of the Kenya Bankers Association's (KBA) Inua Biashara Exhibition in Nairobi on Wednesday, Ruto said his government recognises, embraces and champions the critical contributions of MSMEs, notably in creating between 80 and 90 per cent of jobs and generating nearly a third of the Gross Domestic Product (GDP).
"Without a doubt, under the right conditions, MSMEs have even greater potential to drive national economic transformation at an accelerated pace, creating jobs for our youth and improving the livelihoods of both urban and rural communities and enterprises,'' Ruto said.
The head of state said that the Bottom-Up Economic Transformation Agenda outlines strategic interventions that his government will implement in collaboration with private sector investments in creating an enabling environment across all sectors, particularly for MSMEs, to unlock opportunities and achieve inclusive transformation.
"I am particularly encouraged by the thematic focus of this event because the empowerment of MSMEs is at the core of the Bottom-Up Economic Transformation Agenda, which is our vehicle to deliver equitable development and inclusive growth that engages all citizens."
He commended the banking industry, not only for its essential role in ensuring the efficient functioning of the economy and maintaining the integrity of the financial sector but also for leading by example in tax compliance.
In 2023, the banking industry contributed Sh190 billion in taxes, reflecting its performance and potential.
"These funds significantly support the government’s efforts to improve infrastructure, enhance public services, and promote robust economic activity."
He praised the banking sector for expanding lending to the MSME sector through a variety of dedicated products that saw at least Sh783 billion loaned to small businesses in 2023, representing an increase of approximately Sh75 billion.
Launching the MSME Accelerator Programme, Ruto called on stakeholders to reflect and collaborate boosting small businesses' capabilities through comprehensive assessments, advanced training and tailored support from public and private sector partners.
"As we do this, I am confident that our banking sector’s dedicated support programme will facilitate MSMEs to develop scalable business models, strengthen financial management skills and gain access to investors, markets and formal credit,'' Ruto said.
He also thanked bankers for pledging to double lending to MSMEs by providing Sh150 billion in new loans annually, beginning in 2025.
"Accordingly, the government will support this bold and innovative move through policy and institutional backing, including measures to guarantee the prompt payment of all pending government bills, which will commence once the ongoing verification process is completed."