Government mobilises Sh 60 billion to support MSMEs

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Business

The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development has mobilised Sh 60 billion from donor funds to support MSMEs.

 Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya announced that the Ministry has refurbished 21 Constituency Industrial Development Centres which has consequently led to the creation of about 5,600 groups.

Oparanya who was speaking at a press briefing held on Monday at the NSSF building, mentioned that through the financial inclusion fund (Hustler Fund), the ministry has managed to lend out Sh57 billion to 22 million Kenyans.”So far, 2 million people have graduated from the Hustler Fund. These are people who have consistently borrowed money from the time the fund was initiated and now they are moving to the Small and Medium Enterprise category,” said the CS.

He announced that within the hustler fund mandatory savings of 5percent, the ministry   has generated Sh 3.5 billion as of June 30, 2024.Regarding coffee, Oparanya stated that under the coffee sector, the ministry has advanced farmers Sh4.5 billion through reforms undertaken by the Deputy President.

The CS further noted that in the dairy sector under the new Kenya Cooperative Creameries, the ministry has guaranteed farmers a payment of Sh50 per litre of milk from the initial Sh 37. “We have agreed that a farmer will be paid half the money immediately he or she delivers the milk either through cooperatives or directly and the rest of the money will be paid as soon as the milk is processed,” he said.

In his remarks, the Deputy Chief of Staff, Performance and Delivery Management Eliud Owalo stated that his office and the office of the Ministry of Cooperatives have agreed on several commitments that need to be achieved within the current financial year.

He singled out the promotion of the Kenyan coffee as one the ministry’s commitment to endorsing coffee varieties in the local and international market through trade fairs. Owalo noted that coffee is currently facing the challenge of debts and revealed that upon verification of the debts, the ministry will waive the debts to a tune of about Sh 2 billion which has been accommodated within the budget for the financial year of 2024 to 2025.

To address the issue of weak governance, he mentioned that the ministry will strengthen the governance framework through the dissemination of the code of conduct to various cooperative societies.”The Ministry will undertake the training of cooperative officials on issues of ethics and governance and we will work with relevant agencies like the Ethics and Anti-Corruption Commission,” he added.

The Deputy Chief of Staff urged all stakeholders to create an enabling environment for MSMEs through the development of the financial inclusion policy to promote funding of such enterprises. The Deputy Chief of Staff, Performance and Delivery Management in partnership with the Ministry of Co-operatives and Micro, Small and Medium Enterprises Development is committed to boost the economy of the country in various sectors.