Access to affordable finance for MSMEs

The Kenya Kwanza government promised to commit Kshs 50 billion a year to provide Micro, Small & Medium Enterprises with 100 per cent access to affordable finance through SACCOs, venture capital, equity funds and long-term debt for start-ups and growth-oriented SMEs.

• The government launched the Hustler Fund in November 2022 as a flagship initiative to offer affordable credit to MSMEs and individuals. By June 2024, the fund had disbursed approximately Sh57 billion to over 22 million Kenyans, with about 2 million borrowers transitioning from microloans to the SME category.
• In March 2024, the government launched the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, which seeks to increase access to financial services for MSMEs.
• However, concerns have been raised over the overregulation of businesses, overtaxation, and pending bills (the government, both national and county governments, owes small businesses around Kshs 70 billion).