Investments, Trade, and Industry Cabinet Secretary Salim Mvurya has launched a partnership between the European Investment Bank (EIB) and the Young Businesses in Africa Initiative aimed at empowering Micro, Small, and Medium Enterprises (MSMEs) in Kenya. The initiative, which will be implemented in collaboration with KCB Bank Kenya, focuses on providing funding and resources to support young entrepreneurs and women.
Speaking at a signing ceremony in Nairobi, Mvurya highlighted the crucial role MSMEs play in Kenya’s economy, noting their contribution of over 33 percent 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.
The EIB serves as the lending arm of the European Union, while the Young Businesses in Africa Initiative aims to support early-stage businesses, young entrepreneurs, and women in Africa in launching and growing sustainable and inclusive enterprises. Mvurya acknowledged that access to finance is a significant challenge for many MSMEs, often hindering their growth potential.
The partnership aims to provide a new credit line designed to overcome 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.
He further emphasized 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 encouraged women and youth to seize this opportunity, asserting its significance for economic revitalization. He added that the ministry is undertaking rigorous reforms to enhance the business and investment climate in Kenya, intensifying efforts to stimulate sustainable development through technology transfer, improvement of product quality, and enhanced market access for MSMEs.
