MSMEs,
Micro, Small and Medium enterprises (MSMEs) in Murang’a are set to benefit with credit facilities amounting to Sh300 million.
The money which is part of Sh8 billion of the government’s programme dubbed SAFER will be channeled through Saccos in efforts of reviving the MSMEs from the impacts of Covid 19.
The funds administered by the Ministry of Investments. Trade, and Industrialization through Kenya Development Corporation (KDC) is funded through the World Bank and aimed at providing financial support to help MSMEs recover, expand and sustain their operations. In Murang’a, the money will be channeled through Amica Sacco which has a big membership drawn from small scale farmers and micro enterprises.
Speaking while issuing the cheque to AMICA Sacco on Tuesday, Trade Cabinet Secretary Salim Mvurya said the funds among other benefits will help farmers in the county to increase production as well boost value addition of their agricultural produce. The government, Mvurya reiterated, is dedicated to avail affordable credit facilities to MSMEs saying currently more than 7.1 million Kenyans are engaged in the sector.
He noted that residents of Murang’a, especially the youths, will easily access the monies and venture in various income generating projects. Mvurya said the government has kick started construction of EPZ at Mutumbiri area in Kandarab Sub County where those who have engaged in various agricultural activities will benefit highly by accessing markets for their produce.
Lauding the contribution of MSMEs in the economy, Mvurya said the enterprises are crucial drivers of job creation and productivity. “MSMEs have immense potential to propel economic growth and ensure prosperity of our nation. To unlock their full potential, the enterprises urgently need better access to affordable credit services.” He noted.
The CS continued “this vital financial support will enable them to expand their operations and enhance their efficiency and achieve sustainable growth ultimately enabling broader economic opportunities and improving livelihoods for all Kenyans.” Mvurya observed that in the wake of Covid-19 pandemic many MSMES encountered unpreceded challenges thus struggling to sustain their operations and their support of their employees.
The Sh300 million, he noted, embodies the government dedication to the course of MSMEs recovery. The funding is more than just a financial transaction but a life line for businesses across Murang’a County. The funding will enable AMICA Sacco to enhance its ability to offer tailor made financial services that will meet the unique needs of local enterprises ensuring they have the resources necessary to thrive.” The CS further explained.
He urged local MSMEs to tap into the funding module offered by KDC to enable businesses to generate jobs, support families and drive the local economic growth resiliently. Governor Irungu Kang’ata lauded the availability of the funds noting his administration had established county youth service which has trained young people in various artisan courses.
The youths, Kang’ata observed, will be able to access cheap credit facilities from the given funds to venture in SMEs. He underscored vibrant cooperative movements in Murang’a saying many of projects being implemented by his administration, are supported by some local Saccos, Amica included.
On his part, Amica CEO Dr James Mbui celebrated the collaboration between the Sacco and KDC to grow MSMEs in the country. He noted that through the loan facility under SAFER project, KDC has reinforced the Sacco’s ability to empower local businesses particularly in agriculture, trade and manufacturing recovering from the effects of the Covid -9 pandemic.
“Several small businesses were seriously affected by Covid-19, some even closed down and therefore many business owners were unable to repay their loans and we had to reschedule repayment,” Mbui noted adding that those business owners with the ability to reopen their businesses will be considered for the loans.
He stated that with the financial support, KDC is helping Amica Sacco align its business operations with environmental, social and governance standards and will ensure that the financial solutions drive economic progress and enhance stability and ethical impact.
Founded in 1966 Amica has grown from a local cooperative to a tier one Sacco providing accessible innovative and reliable financial services.