Micro, Small and Medium Enterprises (MSMEs) are the undeniable backbone of the Kenyan economy, making up 98% of all businesses in the country.
Unfortunately, they often lack the necessary corporate governance and formal structure to attract funding from financial institutions.
It is against this reality that the Nairobi Securities Exchange (NSE) launched the Ibuka Program to help bridge the US $19B funding gap within the MSME sector.
- •MSME’s employ 30% of Kenyans and contribute upwards of 40% to Kenya’s GDP annually
- •According to Abojani Investments, over 60% of MSME’s have been rejected from receiving financing due to either insufficient collateral or the perception of high risk.
- •While the vast majority of MSMEs are informal, numerous formalized SME’s have achieved revenues of over 5B Kenyan Shillings per year.
Most MSMEs fall short of the minimum requirements needed to list and raise funding on the bourse.
The NSE recognizes that these SMEs need support in building internal capacity in areas such as corporate governance, financial diligence, business strategy and business valuation to enhance their chances of raising capital.
How does the Ibuka Program work?
The program is a 3-month immersive learning experience led by industry experts covering a wide range of topics necessary for SME’s to unlock rapid and sustainable growth.
Ibuka is targeted towards high-growth firms operating in the agriculture, renewable energy, technology, manufacturing, financial services and retails sectors.
To join the program, interested firms are required to have been in operation for at least 1 year and achieved a minimum annual revenue of 100 million Kenyan shillings.
Participating firms should also have a strong management team beyond the CEO or Founder(s).
Organizations who take part in the Ibuka Program will gain access to affordable and patient capital, enhanced public visibility, strengthened governance, and networking opportunities beyond gaining preferential access to the NSE’s One-Stop-Shop – a forum of advisors and financiers suited toward delivering financing needs.
Why partner with the NSE?
The Nairobi Securities Exchange is a fundamental institution to Kenya’s economy.
Since moving the TKWS offices to the NSE nearly a year ago, we can attest that everyday the halls are filled with corporate leaders, investors, and industry experts from across the globe, positioning the NSE not only as an exchange, but as an ambassador for the entire economy.
Through the Ibuka Program, companies are welcomed into the NSE ecosystem, where they can exchange ideas, form partnerships, and meet necessary decision makers.
Applying for the Ibuka Program
For firms that fulfill the program criteria, firms can apply online via https://shorturl.at/pYOhY
If the Ibuka Program can solve even just US$ 1B of the financing gap for Kenyan SME’s, the implications and benefits to the greater Kenyan economy alone have the potential to propel Kenya as a ‘Kingmaker of African Corporates.’
