Telecommunication company-Safaricom has challenged Micro, Small and Medium Enterprises (MSMEs) in the country to tap digital technology for growth.
This, as it moves to equip entrepreneurs with knowledge that will enable them scale their businesses through technology.
According to the firm, leveraging digital technologies will enhance market reach, streamline operations and create a strong brand presence online.
There are over 7.4 million MSMEs in the country, employing approximately 14.9 million Kenyans in various sectors of the economy, generating 30 per cent of the GDP.
“Despite the significant contribution MSMEs make to the economy, they continue to face considerable challenges, such as inadequate knowledge and skills and rapid technology changes among others that hinder the growth of their businesses,"said Cynthia Kropac, chief enterprise business officer, Safaricom.
The telco has been engaging MSMEs in the country, with the most recent being Mombasa-based businesses.
As the global economy rapidly digitalises, it is estimated that 70 per cent of new value created over the coming decade will be based on digitally enabled platform business models.
Launched in March this year, the Grow with Safaricom Business forum will provide ample networking opportunities for MSMEs to connect with peers, industry experts, and potential partners.
A recent report indicated Kenya’s MSMEs had the highest number of lay-offs, temporarily halting of work and salary reductions for employees in the last two years, among key economies in Sub-Sahara Africa.
This is from a survey by global firm–GeoPoll conducted in Ethiopia, Kenya, Nigeria and South Africa.
The “Africa MSME Pulse Survey- 2024 indicates “a troubling trend” of workforce reductions, with 40 per cent of respondents indicating they had to lay off staff in the past two years, as a way of staying afloat in a tough operating environment.
Kenya had the highest number of entities indicating they laid off or opted to cut salaries at 52.56 per cent, followed by Nigeria (47 per cent).
Ethiopia and South Africa had lower incidences of layoffs at 37.96 per cent and 33.33 per cent, respectively.
“This variance underscores the differential impact of economic and political challenges faced by businesses, potentially exacerbated by factors such as political instability, inflation, and the lingering effects of the Covid-19 pandemic,” the report reads in part.
