World Bank To Allocate Funds to Kenya`s Small Enterprises

The World Bank is set to help over 250,000 small enterprises in Kenya by allocating funds to them in an effort to recuperate from the effect of the Covid-19 pandemic.

Kenya`s  World Bank director, Keith Hansen states that the project will incorporate the government, private sectors, and development partners to address the need of financing the Micro Small Manufacturing Enterprises (MSME) sector.

The funds will be issued under the Supporting Access to Finance and Enterprise Recovery Project by the global bank`s International Association (IDA)  and will be manifested through, Microfinance, Saccos, and digital lenders.

This project will be managed by The Central Bank of Kenya, The National Treasury, the Sacco Regulatory Authority, and representatives of the private sectors. Data collected from the past three years estimate IDA`s annual engagement to be about $29 billion (sh3.07 trillion) with about 70% allocated to Africa.

Kenya`s 7.4 million MSMEs hold key to job creation and greater productivity. They play a vital role in the economic development of Kenya, as they contribute approximately 40% of the Gross Domestic Product. The funds are expected to solve challenges faced by MSMEs, despite them constituting 98% of the businesses in the country.

Article done by Charity Nyadzua