Government to set up fund to to boost credit access for SMEs

The government is finalizing guidelines to allow for establishment of a Micro, Small and Medium Enterprises fund to help players in the sector access credit and expand their ventures.

State Department for Industrialization Principal Secretary Dr Francis Owino says his ministry is in talks with the National Treasury to promptly set up the fund to drive manufacturing agenda.

He was speaking in Kisumu City during a consultative forum on MSME Policy currently under development.

Securing capital for a business start-up is one of the major obstacles every entrepreneur faces particularly those in the SMEs sector.

Within the MSME sector, limited credit access has been cited as one of the major factors accountable for hindering the emergence and growth of businesses prompting the government to establish a Medium and Small Enterprises fund to help players in the sector expand their ventures.

Dr Owino says his ministry is in talks with the National Treasury to finalize guidelines before the fund is rolled out.

The MSME fund, he says will come in handy to augment other affirmative action funds among them the Youth Enterprise Fund, Women Enterprise Fund and the National Government Affirmative Action Fund to ensure entrepreneurs have access to credit.

Dr. Owino said the process is expected to be concluded by end of March this year.

He added that 37 Constituency Industrial Development Centres across the country have been revived and equipped with lathe machines to navigate this project.

“The Ministry has made deliberate efforts to refurbish all Constituency Industrial Development Centres ( CIDCs) across the country to provide worksites for SMEs.,37 of these are already completed with the remaining to be completed by the end of this Financial Year.” He added.

The ministry has embarked on formulating standards for various products in the MSME sector to ensure their competitiveness in the market.

  

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