Banks Launch Inuka MSME Support Programme In Nakuru County
Nakuru 26th October, 2018 - The Kenya Bankers Association (KBA) has today officially launched the Inuka Enterprise Program in Nakuru County. The initiative is intended to support Micro, Small and Medium-sized Enterprises (MSMEs) by equipping entrepreneurs with skills designed to enable them to run businesses in a better way. The training is also meant to boost MSME's market reach, enhancing their ability to access credit from banks.
The progarmme, which 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. One-on-one sessions for Nairobi County conclude this week.
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 Vison 2030 development blueprint.
Speaking at the launch, 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.
Dr. Olaka noted that 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 curriculum also endeavors to ensure success stories in every county.
"Participants who complete the training will be supported by KBA to access bank finance for their companies," he added.
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.
Interested MSMEs are required to complete an Inuka Enterprise Program-specific application, where they will be directed to modules tailored to their learning needs. The face-to-face training targets 300 MSMEs, with the interactive online learning platform seeking to reach 10,000 MSMEs in the next five years. KBA is working with its member banks to mobilize Ksh 30 billion to finance target MSMES.
About the Kenya Bankers Association:
KBA (www.kba.co.ke) was founded on 16th July 1962. Today, KBA is the financial sector's leading advocacy group and banking industry umbrella body that represents total assets in excess of USD 40 billion. KBA has evolved and broadened its function to include advocacy on behalf of the banking industry, and championing financial sector development through strategic projects such as the launch of the industry's first P2P digital payments platform PesaLink. In line with the Government's policy on public-private partnerships, KBA and Central Bank of Kenya have implemented key projects such as modernization of the National Payments System through the Automated Clearing House, implementing the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. The KBA members are comprised of commercial banks and deposit taking microfinance banks. For more information, visit www.kba.co.ke.