75pc of MSMEs face closure, says CBK Governor


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.

KBC Radio_KICD Timetable

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.

Also Read  Small scale tea farmers in Bomet re-admitted to KTDA factory

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.

Also Read  Israel Ambassador Oded lauds Konza Technopolis progress

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.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 20153

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.

Also Read  Court stops team picked to oversee reforms in tea industry

Tell Us What You Think