Government mobilises Sh60 billion to boost growth of MSMEs

BY MANU MUMBA AND JOAN OGOLLA, KNA 

The Ministry of Co-operatives and Micro, Small, and Medium Enterprises (MSMEs) Development has mobilized Sh60 billion from donor funds to support MSMEs. 

Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya announced that the Ministry has refurbished 21 Constituency Industrial Development Centres, which has led to the creation of approximately 5,600 groups. 

Oparanya, speaking at a press briefing at the NSSF building, mentioned that through the Hustler Fund, the Ministry has lent out Sh57 billion to 22 million Kenyans. “So far, two million people have graduated from the Hustler Fund. 

These individuals have consistently borrowed money since the fund’s initiation and are now moving to the Small and Medium Enterprise category,” the CS said. 

He added that, through the Hustler Fund’s mandatory savings of five percent, the Ministry generated Sh3.5 billion as of June 30, 2024. 

Regarding coffee, Oparanya stated that under the coffee sector, the ministry has advanced farmers Sh4.5 billion through reforms undertaken by the Deputy President. 

The CS further noted that in the dairy sector under the new Kenya Cooperative Creameries, the ministry has guaranteed farmers a payment of Sh50 per litre of milk from the initial Sh37.

“We have agreed that a farmer will be paid half the money immediately if he or she delivers the milk either through cooperatives or directly and the rest of the money will be paid as soon as the milk is processed,” he said.

In his remarks, the Deputy Chief of Staff, Performance and Delivery Management Eliud Owalo stated that his office and the office of the Ministry of Cooperatives have agreed on several commitments that need to be achieved within the current financial year. 

He singled out the promotion of Kenyan coffee as one the ministry’s commitment to endorsing coffee varieties in the local and international market through trade fairs.