The association made the announcement on Wednesday during the Banking Industry Inua Biashara Small and Medium Enterprise Exhibition at Kenyatta International Conference (KICC).
President William Ruto who was in attendance hailed the banking industry’s renewed focus on supporting SMEs as a critical step toward national economic transformation.
President Ruto underscored the importance of collaboration between the government and private sector to unlock the potential of SMEs.
He noted that SMEs already contribute up to 90 per cent of jobs and nearly a third of Kenya’s GDP, making them essential to the country’s long-term economic strategy.
“The empowerment of SMEs is at the core of our Bottom-Up Economic Transformation Agenda,” Ruto said.
“Through strategic partnerships, we can help these enterprises overcome the barriers to growth, improve livelihoods, and contribute to national prosperity,” Ruto said.
The exhibition showcased a variety of innovative financial products and solutions developed by Kenyan banks to facilitate SME growth.
According to the Central Bank of Kenya, lending to SMEs reached Sh783 billion in 2023, marking a Sh75 billion increase.
However, the new pledge by the banking industry to inject an additional Sh150 billion annually is expected to significantly boost SME activity across the country.
President Ruto also took the opportunity to launch the MSME Accelerator Programme, which aims to provide tailored support for small businesses through training, assessments, and partnerships with public and private sector organisations.
The programme is expected to help SMEs strengthen their financial management skills, develop scalable business models, and gain access to credit and markets.
" 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.
President Ruto further commended the banking sector for its exemplary role in Kenya’s economy, highlighting the industry’s Sh190 billion tax contribution in 2023 as a testament to its importance.
He emphasised that the government would provide the necessary policy and institutional support to ensure the banking sector’s continued growth, particularly in its support of SMEs.
" 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," the President said.
He also urged the National Treasury and the Ministry of Cooperatives and MSME Development to harmonise their policies to create a sustainable framework for addressing the challenges that SMEs face, especially in accessing credit.
He stressed the importance of inclusive engagement within the financial services sector to ensure that the benefits of economic growth are widely shared.
