Exploring Innovative Financing Solutions

Ahead of Mashujaa Day celebrations, The PS for MSMEs Development Hon. Susan Mang'eni alongside  Ps for Housing and Urban Development, Mr. Charles Hinga and Trade and  Investment Ps joined a joint panel discussion with key finance players in exploring innovative financing solutions in the construction industry.

The MSMEs account for a larger share of private sector enterprises across various sectors of the economy. The construction sector is a significant source of wage employment. This growth in wage employment underscores the industry's role in addressing unemployment and supporting livelihoods. 

The Ps called on the key financial institutions to be deliberate and intentional in offering financial support to MSMEs.

"We need to rethink our collateral mechanism, to ensure we break the barriers that hinder the MSMEs " PS Susan urged.

Despite the demonstrated potential and contribution of the sector to the economy, the sector continues to grapple with challenges revolving around access to credit, regulatory hurdles, infrastructure, access to markets due to market barriers, low adoption of technology and innovation among others. Mange’ni quoted.

Our State Department has agencies like UWEZO FUND, KIE, MSEA And Hustler fund  have flexible programs that are designed to foster growth, resilience, and inclusion. 

Through  the Affordable housing project, we have seen huge contributions to MSME through subcontracting. In the Park Road project alone, 1,370 units were built, with 8,500 doors installed through MSME subcontracting, injecting Ksh 120 million into local enterprises. Scaling this nationally, 200,000 homes would require 1,240,000 doors, creating a Ksh 17.52 billion opportunity for MSMEs.