Young manufacturers in the country are set to benefit from a new scheme by the government that will see them access grants of up to Sh6 million to scale up operations.
The funds under the ‘viwandani mashinani’ project will see the Ministry of Co-operatives and Micro, Small and Medium Enterprises support enterprises in Agro business, leather, textiles, milk, edible oils, construction sector, Dairy and livestock.
SMEs will also benefit from a Sh2.7 billion facility that will deepen support, digitise and train the businesses.
The Cabinet Secretary, Ministry of Cooperatives and Micro, Small and Medium-sized Enterprises, Simon Chelugui, observed that whereas Kenya has developed programs and initiatives to support Micro, Small and Medium Enterprises (MSMEs) over the years, their potential is yet to be fully untapped.
“As Government, we continue to prioritize their development, through initiatives such as the Hustlers Fund, as they are critical to realizing the Bottom-Up Economic Plan. To ease service delivery for enterprises, we have established incubation centers in 35 counties,” said Chelugui.
The initiative is governments’ programme aimed at supporting key value chains in the country that have economic potential.
Industry Principal Secretary, Juma Mukhwana observed that the missing link between agriculture and industry has led to shortages of raw materials in the past and called for the strengthening of value chains.
“The national government through the president and the council of governors approved to contribute Sh4.7 billion each for the establishment of industrial parks in every county,” said Mukwana
These parks will see the creation of a project dubbed ‘Viwanda mashinani’ where young manufacturers in their various counties will get grants from the government of up to Sh6 million.
In a bid to cushion farmers from losses the government also announced plans to double spaces for storage capacity of livestock products in an effort to support the textile and leather industry to curb losses.
“We are bringing 650 coolers. We expect those involved around dairy and its value addition organize themselves around the cold storages,” noted Chelugui.
Kenya has 7.5 million Small and medium enterprises that contribute 30 per cent of the country’s 14 trillion Gross Domestic Product.
These enterprises give Sh3.3 trillion worth of value output per annum and make 98 per cent of businesses in Kenya.
According to Chelugui, access to finance and affordability are the main challenges hindering the achievement of success in SMEs.
The cabinet member indicated that the fund, on a daily basis, attract over 7 million Kenyans who borrow and repay the loan.