More than 250,000 small and medium enterprises in the country are set to benefit from World Bank’s financing this year to help them recover from the impact of the Covid-19 pandemic.
The funds issued under the global bank’s International Development Association (IDA) are expected to address financing challenges faced by the sector despite constituting 98 percent of all businesses in the country.
The financing will be issued under the Supporting Access to Finance and Enterprise Recovery project and will be facilitated through microfinance banks, Saccos, and digital lenders.
The project will be managed by the National Treasury, the Central Bank of Kenya, the Sacco Societies Regulatory Authority, and players from the private sector.
“Kenya’s 7.4 million MSMEs hold the key to job creation and greater productivity, however, they urgently need greater access to credit to scale operations, raise their productivity and deliver shared prosperity for Kenyans,” said Keith Hansen, World Bank country director for Kenya.
“We are working with the government of Kenya, the private sector, and other development partners to address the unmet need for financing within the MSME space.”
IDA’s annual commitments have averaged about $29 billion (Sh3.07 trillion) over the last three years to 2021, with about 70 percent going to Africa.
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