Central Bank of Kenya Governor Patrick Njoroge has announced that 75% of Kenya’s Micro, Small and Medium Enterprises face closure in the next 30 days.
According to data from the Kenya Association of Manufacturers (KAM), there are about 7.41 million MSMEs in Kenya, but only 1.56 million are licensed whereas 5.85 million are unlicensed.
Speaking during a virtual press conference, Governor Njoroge gave an update on the status of the economy and announced that something needs to be done to ensure the survival of Kenya’s MSMEs.
He says Kenya’s MSMEs contribute an estimated 40% of the GDP with the majority falling in the informal sector, often dubbed as the lifeblood of the economy.
A survey by the Kenya National Bureau of Statistics (KNBS) released early this year shows that approximately 400,000 micro, small and medium enterprises do not live to mark their second-year anniversary.