Ruto Calls for Private Sector Partnership to Bridge KSh3 Trillion MSME Financing Gap
President William Ruto has called on the private sector to work with the government in expanding access to affordable financing for micro, small and medium-sized enterprises (MSMEs), saying the country’s entrepreneurs remain constrained by a financing gap estimated at KSh3 trillion.
Speaking during the commemoration of World MSME Day in Nairobi on Friday, Ruto said Kenya’s economic growth depends on ensuring that small businesses, which form the backbone of the economy, have access to the capital needed to expand, innovate and create jobs.
“It is neither sustainable nor equitable for the vast majority of our micro and small businesses, the cornerstone of Kenya’s economy, to remain excluded from the flow of capital they need to grow, innovate and create jobs,” the President said.
Ruto invited financial institutions, investors and other private sector players to collaborate with the government in developing innovative and inclusive financing solutions to address the funding deficit facing small businesses.
“We extend an invitation to the private sector to partner with government in designing more innovative and inclusive solutions to bridge the financing gap that stands at KSh3 trillion,” he said.
The President urged lenders and investors to view unbanked entrepreneurs as an opportunity rather than a financial risk, saying millions of Kenyans operating outside the formal banking system have the potential to drive economic transformation if given access to credit and financial services.
“The unbanked should not be viewed as a risk to be kept at arm’s length. They represent an immense opportunity, a vibrant market waiting to be served, empowered and integrated into the formal economy,” Ruto said.
He reaffirmed the government’s commitment to strengthening policies aimed at supporting MSMEs, noting that the sector plays a critical role in employment creation, innovation and wealth generation.
“As we mark World MSME Day in Nairobi, we reaffirm our government’s unwavering commitment to standing with our entrepreneurs,” he said.
Ruto said the government would continue implementing reforms designed to create a more favorable business environment, expand access to finance and enable entrepreneurs to grow their enterprises.
“We will continue implementing policies that empower MSMEs to thrive, expand their enterprises, create jobs and contribute even more meaningfully to Kenya’s economic growth and shared prosperity,” he added.
Micro, small and medium-sized enterprises account for the majority of businesses in Kenya and employ millions of people, making the sector a key pillar of the country’s economic development strategy.
Access to affordable financing, however, remains one of the biggest challenges facing entrepreneurs, particularly those operating in the informal economy.
