Investments, Trade, and Industry CS Salim Mvurya has inaugurated a partnership between the European Investment Bank (EIB) and the Young Businesses in Africa Initiative to empower Micro, Small, and Medium Enterprises in Kenya.
The initiative, to be implemented in partnership with the KCB Bank Kenya, will provide funding and resources, particularly focusing on supporting young entrepreneurs and women.
Speaking during a signing ceremony in Nairobi, Mvurya emphasised the pivotal role MSMEs play in Kenya’s economy, contributing over 33 per cent to the nation’s GDP.
“This credit line is a vital lifeline for early-stage businesses, empowering our youth and women to embark on self-sustaining ventures,” he stated.
EIB is the lending arm of the European Union while Young Businesses in Africa Initiative is a drive that supports early-stage businesses, young entrepreneurs, and women in Africa to launch and grow sustainable and inclusive businesses.
Access to finance remains a significant challenge for many MSMEs, often stunting their growth potential.
The partnership offers a new credit line designed to alleviate these barriers by offering essential capital, technical expertise, and partnerships with local financial institutions.
“This comprehensive approach will create diverse funding opportunities, enabling MSMEs to recover, scale, and contribute to sustainable economic growth,” Mvurya said.
The CS further highlighted the importance of MSMEs in fostering innovation and establishing value chain linkages with larger enterprises.
“By developing customised products and services, MSMEs can meet both local and global market demands, thereby retaining wealth within our communities,” he noted.
Mvurya urged women and youth to take advantage of the opportunity, stating that it is crucial for economic revitalisation.
He noted that the ministry is undertaking rigorous reforms to enhance the business and investment climate in Kenya, as it intensifies efforts to stimulate sustainable development by facilitating technology transfer, improvement of product quality, and enhancement of market access for MSMEs.