75pc of MSMEs face closure, says CBK Governor

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CBK Gorvernor

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.

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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.

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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.

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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.

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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.

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