Government targets millions of small businesses in nationwide support drive

Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya. [File, Standard]

The government has stepped up efforts to expand access to finance, skills and markets for millions of small businesses across the country in a fresh push to use the sector to drive job creation and economic growth.

The initiative, launched in Vihiga, brings together more than a dozen government agencies under a coordinated approach aimed at taking enterprise support closer to traders, artisans, farmers and young entrepreneurs across the country.

The drive comes as the government estimates that more than 20 million people are engaged in micro, small and medium enterprises (MSMEs), making the sector a major source of employment and livelihoods.

Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya said the initiative would address some of the key challenges facing small businesses, particularly limited information on government programmes and how to access available support.

“The Government has intervened to ensure that these institutions put in place appropriate strategies so that small businesses, especially those at the grassroots, can benefit,” Oparanya said.

He said 15 experts from different sectors had been deployed to guide entrepreneurs on available financing, training, employment and market opportunities.

“Continued sensitisation is necessary because lack of information remains a barrier for small-scale traders seeking affordable financing,” he said.

The programme is expected to be rolled out across all counties, bringing together agencies including the Micro and Small Enterprises Authority (MSEA), Uwezo Fund, Youth Enterprise Development Fund, Women Enterprise Fund, Kenya Industrial Estates, Hustler Fund, National Industrial Training Authority (NITA), National Employment Authority and Kenya Export Promotion and Branding Agency.

Beyond providing information on individual programmes, the government is seeking to link beneficiaries to different agencies so that entrepreneurs can access complementary services rather than relying on a single intervention.

The CS spoke in Mbale, Vihiga County, where the nationwide drive was launched.

MSEA Director General Henry Rithaa said 2,019 beneficiaries of the National Youth Opportunities Towards Advancement (NYOTA) programme in Vihiga County had received Sh92.1 million, while two enterprise clusters in construction and textiles were receiving support under the Kenya Jobs and Economic Transformation programme.

“MSEA will continue to take its services closer to entrepreneurs, working with county governments and partner agencies to scale their growth,” Rithaa said.

The authority is also supporting artisans through its centres in Luanda, Manyatta and Hamisi, with beneficiaries engaged in trades ranging from welding and carpentry to tailoring, leatherwork, baking, soap making and agribusiness.

At the Vihiga launch, Uwezo Fund issued Sh4.55 million to 40 groups in Hamisi and Vihiga constituencies, while the Women Enterprise Fund disbursed Sh14 million to women entrepreneurs.

Representing Uwezo Fund, Head of Loans Dr Annie Njau said the fund was designed to provide women, youth and persons with disabilities with access to finance while building their capacity to run enterprises.

“The Fund supports women, youth and persons with disabilities through financing, capacity building and enterprise development,” she said.

The government is also banking on mentorship to improve the survival and growth of enterprises after beneficiaries receive start-up capital.

NYOTA official Patrick Muchunku said beneficiaries were being linked to experienced entrepreneurs who provide coaching and conduct business site visits.

“Beneficiaries are paired with experienced mentors who offer coaching and business site visits so that the start-up capital translates into enterprises that survive and grow,” Muchunku said.