MSME strategy that will create equity, wealth
Joash Njani and Pramila Mwibanda during the recent Kiambu County Youth Innovation and Entrepreneurship Week held in Juja. They showcased modernised vertical gardens and other technologies used for urban farming.
Kiambu residents have always lived up to the challenge of avoiding predicaments like the Egyptian famine highlighted in the Bible. An entrepreneurial and innovative spirit that anticipates challenges has been their way of life. I see this often with the youth during my many inspections of road construction projects across the county.
The youth constitute 65 per cent of the county’s population of 2.4 million. That means Kiambu has 1.56 million people aged under 35. When opportunities for casual labour arise out of the construction projects, the youth open food joints, carwash bays and other small businesses alongside the road project rather than do the menial jobs. That shows they are more inclined to opening and running micro, small and medium enterprises (MSMEs).
MSMEs contribute over 40 per cent of our gross county product (GCP) and 90 per cent of employment. A major economic driver, it should be protected and supported. In March, in recognition of the innovative and entrepreneurial spirit of our youth, we organised with our partners Kiambu’s first ever Innovation and Entrepreneurship Week.
Mind-blowing innovations
The week-long event was an opportunity to over 200 innovators and entrepreneurs to showcase their mind-blowing innovations and business ideas in boda boda technology, Covid-19 mitigation, health diagnostics, weather prediction, farm automation, value addition in agribusiness and technology product manufacturing.
The young innovators interacted with captains of industry, financial services providers and the public, giving them exposure aimed at scaling up their enterprises. They also benefited from expert panel discussions and masterclasses in finance, taxation, legal matters, intellectual property, (IP) marketing or branding and governance. The masterclasses were a particular hit with the youth. The feedback, in order of priority, was the need for innovative financing of their businesses, upskilling in marketing and branding, supply chain linkages and IP.
Credit guarantee scheme
In response, the county government has partnered with KCB in a structured Credit Guarantee Scheme—the Kiambu Jiinue Fund Credit Guarantee Scheme. The county has allocated Sh138 million to leverage KCB’s Sh1.3 billion to finance MSMEs. Besides a subsidised interest rate of seven per cent per annum, lower than the market rate of 13 per cent, the MSMEs will also not be required to provide collateral security.
The approach is a well-designed, self-sustaining revolving fund with support and partnerships from local and international finance institutions.
Also, through a Business Development Centre we have also set up in partnership with universities and other professional bodies, MSMEs continue to be trained in finance, marketing, legal, governance, HR and other areas of expertise as need arises.
With the initiatives, the second-highest contributor to the national GDP, at 5.9 per cent, is tipped to leapfrog Nairobi in wealth, job creation and equity and create the next cohort of “Kiambu billionaires”.
Mr Nyoro is the Governor of Kiambu County. [email protected].
