NAIROBI: A new partnership spearheaded by the Ministry for Investments, Trade, and Industry has brought together the European Investment Bank (EIB), the Young Business in Africa initiative, and KCB Bank Kenya to empower Micro, Small, and Medium Enterprises (MSMEs) in Kenya. The collaboration is designed to support youth and women-led businesses and early-stage start-ups through a program called Investing in Young Businesses in Africa (IYBA).
According to Kenya News Agency, the initiative was launched by stakeholders from Team Europe, who convened in Nairobi to address the challenges and opportunities for youth and women-led enterprises in Africa. The program aims to propose recommendations to enhance private sector support in the region. Investments, Trade, and Industry Cabinet Secretary Salim Mvurya emphasized the project’s role in stimulating sustainable industrial growth in Kenya through subcontracting. This initiative is intended to create jobs, enhance market access for MSMEs, and facilitate technology
transfer to improve product quality and capacity building.
Cabinet Secretary Mvurya urged women and youth to leverage the IYBA program, which he described as a unique tool crucial for economic revitalization. The initiative aims to accelerate the growth of start-ups and young entrepreneurs by providing access to finance, mentorship, and technical assistance. Mvurya highlighted that the initiative supports young entrepreneurs in Africa, facilitating their success in various sectors such as technology, agriculture, and energy. He noted that MSMEs are vital to Kenya’s economy, contributing over 33 percent to the nation’s GDP.
Mvurya described the credit line as a significant lifeline for early-stage businesses, empowering youth and women to embark on self-sustaining ventures. He acknowledged that access to finance remains a significant challenge for many MSMEs, often hindering their potential growth. The comprehensive approach of the initiative seeks to create diverse funding opportunities, enabling MSMEs to r
ecover, scale, and contribute to sustainable economic growth.
The Cabinet Secretary also highlighted the importance of MSMEs in fostering innovation and establishing value chain linkages with larger enterprises. These efforts aim to develop customized products and services, meeting both local and global market demands while retaining wealth within their communities. As the Ministry intensifies reforms to enhance the business and investment climate in Kenya, it is also focusing on an industrial subcontracting strategy to stimulate sustainable development by facilitating technology transfer and improving market access for MSMEs.