SMEs will start receiving credit facilities from a consolidated fund to be established through a Public Private Partnership.
Industry and Trade Cabinet Secretary Peter Munya says, the government and players in the financial sector are finalizing drafting a bill that will among others see the government act as a guarantor for the SMEs in a bid to de-risk small businesses.
Access to credit has been among challenges that small and medium enterprises face with most financial institutions hesitant to loan them.
Under the deal, the government will guarantee SMEs up to 20 percent of the credit they will receive.
Financial institutions will also contribute to the public private partnership kitty.
The issue of delayed payments from suppliers has affected SMEs, some of who have been blacklisted by credit reference bureaus.
Munya is assuring suppliers that the cabinet is finalizing a policy on payment of suppliers.
Small SME were encouraged to explore collaborations or merging their operations to enjoy the economies of scale.
Meanwhile, the government has moved in to streamline operations of long distance truck operators in a move aimed at reducing road accidents.
The National Transport and Safety Authority, who launched the 12th edition of a road safety campaign in Machakos says plans are underway to ensure stringent policies are in place to guide their operations.
This comes barely a month after two trucks collided and burst into flames grounding transport along the busy Nairobi-Mombasa Highway.
NTSA Director General, Francis Meja reiterated his commitment in keeping the roads safe pledged to convene a meeting between long distance truck operators and other road users in a bid to find a solution to reduce road accidents.
Machakos County Executive Committee in charge of roads, Morris Aluanga said the county plans to repair potholes to improve transport services in the county.