The Kenya Bankers Association (KBA) launched its strategy to support Micro, Small and Medium-Sized Enterprises (MSMES) in Nakuru County.
The Inuka Enterprise Program (IEP) initiative intends to equip entrepreneurs with skills designed to enable them to run businesses effectively. The training is also meant to boost MSME’s market reach, enhancing their ability to access credit from banks.
IEP was initiated by the banking industry this year, was motivated by the need to facilitate more access to loans to small businesses. So far, more than 170 start-up and established business owners have received face-to-face enterprise management training, with close to 900 already enrolled on the programme’s online training platform.
According to the Central Bank of Kenya, the introduction of the Banking Amendment Act in September 2016 has reduced lending to the MSMEs, contributing to a 1.4 percent decline in the growth of GDP. This has had a negative effect on the sector’s role in Kenya’s realisation of the Big Four agenda and the Vision 2030 development blueprint.
KBA CEO Dr. Habil Olaka said MSMEs are principal drivers of economic growth and regional development, reiterating the banking industry’s commitment to assist them to realize their full potential. “MSMEs remain a principal driver of real economic growth and regional development through their contribution to industry, innovation and job creation. However, establishing business owners face various challenges that include limited access to financing. A low capacity to leverage on existing market opportunities for growth is another fundamental concern for entrepreneurs,’’ he said.
KBA, in conjunction with the Kenya Institute of Management (KIM), have developed and deployed a curriculum that seeks to equip MSMEs with the knowledge to formalize their operations to address the challenges, with an aim to create more jobs in various MSME-led sectors.
The course for the online and face-to-face training contains seven modules, which include:
• Module 1: Entrepreneurship
• Module 2: Financial Management
• Module 3: Business and Strategic planning
• Module 4: Operations and Value Chain Management
• Module 5: Marketing and Business communications
• Module 6: Human Resource Management
• Module 7: Legal Management, constitutional rights, vision 2030 and socioeconomic roles of MSMEs.
In the programme, KBA has partnered with the Ministry of Industry, Trade and Cooperatives; Micro and Small Enterprise Authority (MSEA); Kenya Private Sector Alliance (KEPSA); Kenya National Chamber of Commerce and Industry; and the Kenya Association of Manufacturers with the objective of ensuring that MSMEs from various sectors across the country are empowered.